By Sparsh Khandel, CEO, Stylework
A few years ago, the co-working conversation was confined to metro cities. Delhi NCR, Bengaluru, and Mumbai were the epicentres of flexible workspaces, driven by soaring real estate costs, startup surges, and dense corporate activity. Fast forward to 2024, and India’s workspace narrative is being rewritten, this time with Tier 2 cities at the centre.
Places like Jaipur, Chandigarh, Indore, Kochi, and Lucknow are no longer secondary markets. They’re becoming pivotal to India’s evolving work culture, thanks to the rise of hybrid work, reverse migration, and a growing demand for better quality of life.
As per Knight Frank and JLL, nearly 18% of India’s total flex space absorption now comes from non-metro markets, up from just 11% in 2021. This trend signals more than a temporary shift, it marks a structural change in how and where India works.
Why tier 2 cities matter in the co-working boom
Tier 2 cities aren’t “secondary” anymore. They’re turning into thriving economic centres. According to JLL India, leasing activity in these markets saw over 25% year-on-year growth in 2023, with flex space providers like Stylework, Awfis, and 91Springboard paving the way.
Some of the contributing factors includes –
1. Reverse migration & rise of local entrepreneurship
The COVID 19 pandemic prompted many professionals to return to their hometowns. Rather than returning to metros, many chose to stay, launching startups, embracing freelance work, and contributing to local economies. This entrepreneurial surge created immediate demand for high-quality, professional workspaces.
2. Distributed teams for enterprises
Enterprises are increasingly setting up satellite offices in smaller cities to tap into new talent pools and support hybrid work. This decentralised approach reduces costs while expanding access to skilled professionals beyond metros. It also boosts business resilience and fosters a more flexible, inclusive work culture.
3. Cost-effective real estate
Commercial spaces in Tier 2 cities are 25–35% cheaper than in metros, making them a cost-effective choice for businesses. The lower lease costs allow operators to offer premium amenities and design without significantly raising prices. This makes high-quality workspaces more accessible to startups and small businesses. With rising demand, these spaces also offer better returns on investment.
4. Boost from government policies & infrastructure
Government initiatives like the Smart City Mission, improved public transport networks, and startup-friendly policies are accelerating the growth of Tier 2 cities. Expanding metro lines, better roads, and digital infrastructure are making these locations more accessible and efficient for businesses. Incentives such as tax benefits, incubation support, and ease of doing business are attracting entrepreneurs and enterprises alike. Together, these developments are transforming smaller cities into business-ready hubs.
5. Lifestyle & liveability
Tier 2 cities offer a more balanced lifestyle, with shorter commutes, less traffic, and significantly better air quality compared to metro areas. Affordable housing and lower living costs make them attractive for professionals looking to settle long-term. As a result, they are increasingly seen as viable alternatives for both work and family life.
This shift is having a ripple effect on the real estate landscape:
- Flex operators are scaling up: Players like Stylework, Innov8, and others are rapidly expanding into cities like Chandigarh, Bhopal, Coimbatore, and Surat.
- Smaller, faster leases are the new norm: Instead of long-term, high-ticket rentals, many businesses are opting for leaner models with quicker turnover.
- Managed offices are trending: Especially in newer regions, companies prefer flexible, test-and-scale setups over traditional leases.
According to CBRE reports that between 2022 and 2024, flex space inventory in Tier 2 cities jumped by 30%, a clear sign that this isn’t just a passing trend.
Stylework’s role in enabling distributed work
With a presence in over 120 cities across India, Stylework is right at the heart of this evolution. Our platform offers access to 4,000+ workspaces, many of them in emerging hubs like Indore, Kochi, and Lucknow. In just the first quarter of 2024, nearly 30% of our SME onboardings came from non-metro cities—a number that’s steadily growing.
Our tech-first platform, FlexBoard, empowers enterprises to manage distributed teams seamlessly whether they’re in Mumbai, Indore, or Kochi. Among our key service offerings under the broader business suite, the All-India Access Pass is seeing strong uptake in Tier 2 cities, particularly among startups and regional sales teams looking for flexibility without long-term commitments.
What lies ahead
India’s next wave of workspace innovation will be locally rooted, digitally powered, and inclusively designed. With better digital infrastructure, pro-business policies, and changing workforce expectations, Tier 2 cities are poised to redefine how India works.
This isn’t just a flex-space revolution, it’s a mindset shift. One where productivity, affordability, and community come together.
If the first co-working boom was driven by space scarcity in metros, the next is driven by opportunity creation across India’s rising cities.
The map is expanding and so is the mindset
