India’s Tier-II and Tier-III cities see surge in flexible workspace usage

Smaller urban centers in India are experiencing a significant rise in office and co-working space usage as hybrid work models allow employees to work closer to home. Data from International Workplace Group (IWG) indicates substantial growth in workspace visits across several Tier-II and Tier-III cities.

Coimbatore recorded the highest increase, with aggregate workspace visits rising by 41% in the six months leading up to May 2026 compared to the previous period. Other notable increases were seen in Jalandhar (25%), Nashik (21%), Dehradun (19%), and Mohali (17%).

To meet this localized demand, IWG added 43 new locations in India during the first half of 2026. The company has expanded into various cities over the last two years, including Amritsar, Bhubaneswar, Calicut, Guwahati, Mangaluru, Mysuru, Nagpur, Trivandrum, and Vadodara. This expansion utilizes a capital-light model, which accounts for 95% of recent signings through partnerships with property owners.

According to Vestian, Tier-II cities now host over 575 flexible workspace centers, representing nearly 29% of the national total. These locations offer costs that can be up to 50% lower than those in major metropolitan areas.