Flex Spaces Reshaping Tier-2 Office Markets
Real Estate

Flex Spaces Reshaping Tier-2 Office Markets

India's leading cosmopolitan centres such as Bengaluru, Hyderabad, NCR and MMR continue to anchor the office market, but absorption surged by almost 30 per cent to 78.2 million (mn) sq ft in 2025 compared with 2023. Over 40 per cent of this demand was driven by Global Capability Centres (GCCs), whose footprint expanded by almost 50 per cent to approximately 35 million (mn) sq ft. As global uncertainty persists, large international companies regard India as a stable safe haven and are shifting focus from saturated Tier-1 markets to Tier-2 cities.

The structural shift is underpinned by government initiatives, infrastructure upgrades and an expanding local talent base, offering cost arbitrage and improved liveability. Micro, Small and Medium Enterprises (MSMEs) account for more than 50 per cent of registrations in non-metro cities, reinforcing local demand and supply chains. Flexible workspace operators are emerging as the preferred providers by enabling agile, scalable and capital efficient expansion for occupiers seeking satellite campuses, innovation hubs and delivery centres.

The report highlights city level projects and policies that are catalysing growth, including the Mumbai–Ahmedabad bullet train, regional expressways and dedicated industrial corridors. Examples include a power infrastructure upgrade in Mohali valued at around Rs 7.08 billion (bn) and broad infrastructure spending in Goa amounting to around Rs 70.76 billion (bn), while state level GCC and IT policies are actively promoting decentralisation. Prestigious educational institutions in these cities are supplying specialised skill sets, reducing the need for talent migration to metros.

Cost efficiency, a diverse talent pool and improving connectivity position Tier-2 markets to host multinational pharmaceutical, engineering and manufacturing enterprises alongside growing IT and business process sectors. The report finds that collaboration between GCCs and flex operators is amplifying sector wise participation and enabling distributed growth across non metro corridors. Consequently, flexible workspaces are set to reshape commercial real estate in non metros and strengthen the foundation for the vision of Viksit Bharat 2047.

India's leading cosmopolitan centres such as Bengaluru, Hyderabad, NCR and MMR continue to anchor the office market, but absorption surged by almost 30 per cent to 78.2 million (mn) sq ft in 2025 compared with 2023. Over 40 per cent of this demand was driven by Global Capability Centres (GCCs), whose footprint expanded by almost 50 per cent to approximately 35 million (mn) sq ft. As global uncertainty persists, large international companies regard India as a stable safe haven and are shifting focus from saturated Tier-1 markets to Tier-2 cities. The structural shift is underpinned by government initiatives, infrastructure upgrades and an expanding local talent base, offering cost arbitrage and improved liveability. Micro, Small and Medium Enterprises (MSMEs) account for more than 50 per cent of registrations in non-metro cities, reinforcing local demand and supply chains. Flexible workspace operators are emerging as the preferred providers by enabling agile, scalable and capital efficient expansion for occupiers seeking satellite campuses, innovation hubs and delivery centres. The report highlights city level projects and policies that are catalysing growth, including the Mumbai–Ahmedabad bullet train, regional expressways and dedicated industrial corridors. Examples include a power infrastructure upgrade in Mohali valued at around Rs 7.08 billion (bn) and broad infrastructure spending in Goa amounting to around Rs 70.76 billion (bn), while state level GCC and IT policies are actively promoting decentralisation. Prestigious educational institutions in these cities are supplying specialised skill sets, reducing the need for talent migration to metros. Cost efficiency, a diverse talent pool and improving connectivity position Tier-2 markets to host multinational pharmaceutical, engineering and manufacturing enterprises alongside growing IT and business process sectors. The report finds that collaboration between GCCs and flex operators is amplifying sector wise participation and enabling distributed growth across non metro corridors. Consequently, flexible workspaces are set to reshape commercial real estate in non metros and strengthen the foundation for the vision of Viksit Bharat 2047.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code