Tier-2 cities emerge as flex space growth hubs in India

Tier-2 cities in India are rapidly gaining prominence as key drivers of growth in the country’s flexible office space market, with total flex stock in these cities reaching nearly 9 million square feet, according to a report by Vestian.

The report highlights a structural shift in India’s urban and commercial real estate landscape, as businesses increasingly look beyond metro cities to expand operations. This trend is largely driven by rising demand and capacity constraints in major metropolitan areas, prompting companies to explore more cost-effective and scalable alternatives.

As of February 2026, Tier-2 cities account for over 575 flex workspace centres, comprising nearly 29 per cent of the country’s total flex centres and over 9 per cent of the overall flex stock. Among these cities, Ahmedabad leads with a 22.7 per cent share of flex stock, followed by Kochi (10.2 per cent), Indore (10.1 per cent), Jaipur (8.5 per cent), and Coimbatore (8.3 per cent).