Tier-2 cities in India now accommodate more than 575 flex centers and around 8.8 million square feet of flex space, comprising almost 29% of the country’s flex centers and over 9% of flex space nationwide, according to a report by Vestian. Ahmedabad leads the tier-2 cities with 22.7% of flex space.
Following Ahmedabad, Kochi holds 10.2%, Indore 10.1%, Jaipur 8.5%, and Coimbatore 8.3% of Tier-2 flex space. Lucknow at 7.6% and Mangaluru at 6.3% are next, with other cities contributing 13.1% collectively.
Flex spaces in Tier-2 cities not only provide flexible and scalable workspace solutions but also offer cost advantages of up to 50% compared to metropolitan cities. Driven mainly by the IT-ITeS sector, with Consulting Services, BFSI, and Engineering & Manufacturing sectors following suit, more than 200 companies have established over 300 GCC bases in major Tier-2 cities, the report highlights.
Nearly 9% of flex centers in Tier-2 cities cater to GCC-led operations, while 16% of GCC bases operate from flexible workspaces. Although GCCs are not the primary demand drivers for flex spaces, they have become a preferred workspace choice for many GCC companies.
Shrinivas Rao, FRICS, CEO of Vestian, mentioned, “As infrastructure improves and flex ecosystems mature, the decentralization of GCCs will be a key aspect of the Viksit Bharat 2047 vision.” The report also emphasized that the escalating demand for commercial and residential assets has led to Tier-2 cities emerging as the next growth frontier, providing businesses with opportunities for expansion while ensuring efficiency and sustainability.
