Expanding Workspaces to Tier 2 and Tier 3 Cities

Coworking spaces are the most popular type of shared office space. Innovations have made a significant difference in the workspace. However, coworking operators have always assured that it is not only individuals working independently but also those who have developed the phenomenon of keeping a relationship with other employees.


As a significant kind of co-working space in tier-2 and tier-3 cities, coworking may still be in India's early phases of development. Coworking spaces are trendy among boutique enterprises and startups nowadays, as they provide flexibility without tying up leasing obligations. However, since the first investment is significant and they would have been considered the best chances in terms of ROI, it stands to reason that Tier 1 cities have been the primary focus of co-working space.


Co-working spaces were in demand since large cities produced the majority of jobs, and there was a surge in inward migration. Today, cities like Bangalore, Delhi, and Mumbai have the most co-working spaces, but Kochi, Indore, Jaipur, Chandigarh, and Ahmedabad are seeing a comparable increase in demand.


The reasons why all the Tier 2 and Tier 3 cities are expected to see an expansion of co-working spaces are:



Entrepreneurs in Tier 2 and Tier 3 cities

Smaller communities have technologically skilled residents who are specialists in building and implementing their own companies. Coworking spaces would make it simpler, minimise the gap, and allow such people to begin their jobs right away. However, these competent individuals might take a long time to lease a dependable workplace, especially reimagining office post-Covid-19 with sufficient infrastructure.


Promotion by the Government

To address the growing issues in urban areas, the Smart Cities Mission was established in 2015. While many large cities were thriving in joining the programme, the smaller communities were making headway. India is predicted to have 155 Tier 1 cities, 331 Tier 3/4 cities, and 104 Tier 2 cities by 2030. People would migrate closer to home due to the Make in India government initiative promoting construction in Tier 2 and 3 cities. This also means that there will be more opportunities in these areas, which may see a lot of growth and perhaps the introduction of new co-working spaces.


Choking Cities

Suppose coworking spaces spread to tier 2 and 3 cities, which provide more reasonably priced premises. As a result, it would provide a higher standard of living at lower rates and property taxes. These factors favour expansion in tier 2 and 3 cities, thus fostering co-working and space management growth.


Short Term Projects

Indian and multinational companies are looking to expand their premises in Tier 2 and 3 cities. However, this need may only be required for a brief length of time at times. Mining, dams, bridges, the telecom business, and other specialised research may be among the reasons. This is anticipated to increase customer demand for co-working facilities in such areas.


Companies choose co-working spaces over traditional offices because they have reduced operational expenses and a more flexible work environment. India's Tier 2 and Tier 3 cities are very advantageous due to their flexibility, range of employment opportunities, and affordable access to excellent property. Client demand will be in their favour, which helps, and this is expected to accelerate India's total development rate.


Demands Of The Modern Workforce

By 2020, India, where the average workforce age is 29, is anticipated to have the youngest workforce globally. The economy, however, cannot provide enough employment to employ the pool of potential workers. As a result, the number of freelancers is growing. In addition to receiving a high salary, these resources look for other benefits like flexible work schedules, pleasant work environments, and access to top-notch amenities like the internet, etc. Coworking spaces are an excellent blend of these different requirements, making them a well-liked choice among businesses and professionals. Every business, from well-established corporations to bootstrapped startups, appears to be using coworking to assess the potential in Tier 2 locations.



Tier 2 and 3 cities will become coworking hubs in India due to creating jobs in such areas. It may be crucial in the future to keep younger workers engaged in the workplace. Whether they are still using conventional leased-out facilities or their own office space, many major corporations seek coworking spaces to offer their employees a creative work environment.


Mikro Grafeio enables you to create tailor-made workspace solutions catering to the needs of your workforce in Tier 2 and Tier 3 cities. Process, performance and people are always in order in our spaces.

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