A few years ago, a coworking space was more popular mainly in metro cities, such as Bengaluru, Delhi, or Mumbai. However, today the landscape is shifting significantly, and Tier-2 cities, like Indore, Gurugram, Kochi, Lucknow, and Dehradun, are seeing an exciting and unexpected boom for a coworking space.
But why did this transformation happen all of a sudden? Most importantly, why are startups, professionals, and established businesses opting for a coworking office space outside a metro city? Read on to understand how this shift is quietly transforming India’s workspace future.
Why are Coworking Spaces the Need of the Hour?
Coworking Spaces in Hyderabad in Tier-2 cities are no longer just a trending buzzword or a limited idea. They have become a critical component of modern business strategies. When companies venture outside metro hubs to do business, they demand agile, flexible, and scalable workspaces, which is fueling the growth of these coworking spaces in Tier-2 cities.
Reasons Why There is a Rise in Coworking Spaces in Tier-2 Cities
Cost-Effective
Tier-2 cities have lower utilities, rents, and operational expenses than metro hubs, making custom-designed managed office space a financially attractive option for businesses looking for something within their budget. Entrepreneurs and startups, in particular, can significantly benefit from the lower costs linked with shared office space. This helps them use their resources more efficiently, toward core business growth.
Growing Talent Pool
Most skilled professionals are moving to Tier-2 cities for the lower cost of living and better quality of life. Therefore, such cities have a growing local talent pool for businesses. A coworking serviced office allows companies to provide an avenue to attract and connect with great minds working towards their success and development.
Better Infrastructure
There is a lot of infrastructure development going on in these Tier-2 cities, where investments are being made in good transportation, high-speed internet, and modern facilities. Such an upgraded infrastructure is critical for enterprises, and thus, a plug-and-play office space is more appealing for organisations seeking a working and professional environment.
Government Initiatives
The Indian government’s Startup India programme supports entrepreneurship in Tier-2 cities. It includes offering incubation facilities, financial assistance, and mentorship programs. These help create a conducive atmosphere for a flex space that caters to entrepreneurs’ and startups’ needs.
Evolving Work Models
An increasing rise in flexible and remote work arrangements has changed the work model across different industries. The coworking business center is the solution for those who need a dedicated place of work away from home but with security, productivity, and focus. This versatility and flexibility to switch work modes make these coworking places a very valuable asset for both individuals and businesses.
Real World Example
ZOHO is one of the most compelling real-world examples of companies moving from metro to Tier-2 cities. The company made huge headlines when it shifted its operations from Chennai to Tenkasi in Tamil Nadu, saying that world-class amenities can be found anywhere. It was not just a symbolic move but a strategic one.
Moving its operations to a small town significantly reduced its cost, gave it access to a stable and dedicated talent pool, and contributed to the local economy. At present, over 500 people from Tenkasi work in ZOHO. In addition to business, the company supports and uplifts the region, and a survey revealed that it had better connections with the local community.
Conclusion
Coworking, particularly in Tier-2 cities, is an emerging phenomenon in India. Flexible office spaces are becoming an emerging area that is helping startups and entrepreneurs get world-class facilities without paying higher costs than what they would have paid to traditional office setups.
With aspects of flexibility, affordability, collaboration, and networking, it is best for companies to switch from a traditional office setup to coworking in Tier 2 cities. If you want an office set up in any Tier-2 city in India, contact iKeva. We are among the best coworking space providers who carefully listen to your needs and offer a solution accordingly. Contact us today and find the best space that fits your budget, needs, and specifications.
