In the last four years, the workspace landscape has undergone a massive change, first with the introduction of work-from-home during and after the pandemic and then hybrid working as well as flexi model. More and more companies have now started looking beyond traditional workplace set-up, reducing the dependency on single-location office space. This shift has pushed the need and demand both for co-working and managed offices.

Earlier, there were only a handful of companies which used to have a hybrid working model for their employees. But now more and more organisations in the country have started focusing on work-life balance and employee wellness. This has helped co-working and managed offices to grow by leaps and bounds during the past few years. This has particularly benefited Tier 2 and 3 cities as well as rural areas of the country.

Upsurge of flexi offices in Tier 2 and 3 cities

Commenting on this new trend of upsurge and relevance of flexi offices, Pratyush Pandey, CEO, Upflex India, said, “India’s workspace landscape is undergoing a transformation, fuelled by technological advancements, changing work cultures, and the rise of entrepreneurship. As urban centers become increasingly congested and expensive, there’s a growing trend towards exploring alternative locations for setting up businesses and workspaces. This trend is particularly evident in rural areas and Tier 2 and 3 cities across India.”

Cities that are becoming hub of flexi offices for companies

Many non-metro cities are increasingly becoming attractive for companies looking to expand, thanks to the array of benefits they provide. Tier 2 cities, including Ahmedabad, Indore, Jaipur, Kochi, Bhubaneswar, Chandigarh, and
Lucknow, are gaining substantial popularity in this regard. Additionally, flexi spaces are emerging in cities like Coimbatore, Madurai, Thiruvananthapuram, Visakhapatnam and Vijayawada.

One of the primary advantages of flexi offices is their affordability compared to traditional office spaces and almost no capital investment into setting up a fitted out office, Pandey said, adding that this aspect is particularly appealing in Tier 2 and 3 cities where real estate costs are relatively lower than in major metropolitan areas.

Benefits of flexi offices for companies

“For entrepreneurs and small businesses operating on tight budgets, flexi offices offer a cost-efficient solution without compromising on quality or amenities. With the growing connectivity of metros to Tier 2 and 3 cities these cities have become a hub spot for the local office market and job market to bloom and these cities are seeing a major influx of coworking and managed setups mushrooming,” he further said.

“The upsurge of flexi offices in rural areas and Tier 2 and 3 cities in India represents a paradigm shift in the way we perceive and utilize workspaces,” according to him.

Beyond mere convenience, these spaces play a pivotal role in democratizing access to modern work environments, fostering entrepreneurship, and driving regional development. As the trend continues to gain momentum, flexi offices are poised to become integral catalysts for inclusive growth and innovation across India’s diverse landscape, he added.