Tier-2 Cities Host 9% of India's Flex Office Space, Ahmedabad Leads

The report from Vestian said Ahmedabad led the tier 2 cities accounting for 22.7 per cent of flex stock.

Ahmedabad was followed by Kochi at 10.2 per cent, Indore at 10.1 per cent, Jaipur with 8.5 per cent of Tier-2 flex stock and Coimbatore with 8.3 per cent share, the report further said.

Lucknow (7.6 per cent) and Mangaluru (6.3 per cent) followed, with other cities contributing 13.1 per cent of total share.

Beyond offering agile and scalable workspace solutions, flex spaces in Tier-2 cities deliver cost arbitrage of up to 50 per cent compared to the metropolitan cities. Driven primarily by the IT-ITeS sector, followed by Consulting Services, BFSI, and Engineering & Manufacturing sectors, over 200 companies have already established more than 300 GCC bases across major Tier-2 cities, the report highlighted.

The firm noted that nearly 9 per cent of flex centres in Tier-2 cities cater to GCC‑led operations while 16 per cent of GCC bases operate from flexible workspaces, the report further said.

The trend indicated that even though GCCs are not the major demand driver for flex spaces, flex spaces have emerged as a preferred workspace option for several GCC companies.

"As infrastructure improves and flex ecosystems mature, the decentralization of GCCs will become a cornerstone of the Viksit Bharat 2047 vision," said Shrinivas Rao, FRICS, CEO, Vestian.

"The soaring demand for both commercial and residential assets have intensified pressure on urban capacity in India's cities, leading to Tier-2 cities rapidly emerging as the next frontier for scalable growth, offering businesses the opportunity to expand operations while maintaining efficiency and sustainability," the report said.

- IANS