Tier-2 Cities Account for 29% of India’s Flex Workspace Centers, Ahmedabad Leads Growth
Flex Space Expansion Gains Momentum in Emerging Cities
New Delhi, March 19: Tier-2 cities in India are steadily strengthening their position in the flexible workspace segment, now hosting more than 575 flex centers with a total footprint of approximately 8.8 million square feet, according to a Vestian report released on Thursday.These cities account for nearly 29% of the country’s total flex centers and contribute over 9% to the overall pan-India flexible workspace stock, highlighting a notable shift beyond metropolitan markets.
Ahmedabad Tops Tier-2 Flex Workspace Market
Among Tier-2 cities, Ahmedabad emerged as the leading hub, contributing 22.7% of the total flex stock in this category.Kochi and Indore followed closely, accounting for 10.2% and 10.1% respectively. Jaipur held an 8.5% share, while Coimbatore contributed 8.3%.
Lucknow accounted for 7.6% of the flex stock, with Mangaluru at 6.3%. Other cities collectively made up 13.1% of the total share, indicating a broad-based expansion across multiple emerging urban centers.
Cost Efficiency and Sector Demand Driving Adoption
Flexible workspaces in Tier-2 cities offer significant cost advantages, with savings of up to 50% compared to metropolitan areas. This cost efficiency is a key factor driving adoption among businesses.The demand is primarily led by the IT and ITeS sector, followed by consulting services, banking and financial services, and engineering and manufacturing industries.
The report noted that more than 200 companies have already established over 300 Global Capability Centers across major Tier-2 cities, underlining their growing importance in corporate expansion strategies.
GCC Presence in Flex Workspaces Continues to Grow
While Global Capability Centers are not yet the primary demand drivers for flexible workspaces, their presence is steadily increasing.Approximately 9% of flex centers in Tier-2 cities currently cater to GCC-led operations. Additionally, around 16% of GCC bases operate from flexible workspaces, reflecting a gradual shift toward more agile office models.
Tier-2 Cities Emerge as Growth Engines
The report highlighted that rising demand for both commercial and residential assets has intensified pressure on infrastructure in major cities, prompting businesses to look toward Tier-2 locations for expansion.With improving infrastructure and evolving flex ecosystems, these cities are increasingly being viewed as viable alternatives for scalable and sustainable growth.
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