Tier-II and Tier-III Cities Lead India’s Flexible Workspace Growth as Hybrid Work Expands: IWG
New Delhi, October 21, 2026: India’s Tier-II and Tier-III cities are witnessing a significant increase in office and co-working space usage as companies enable teams to work closer to home, according to a press release issued by International Workplace Group (IWG).
Office attendance data based on Wi-Fi logins across IWG locations shows substantial growth across smaller urban centers. Coimbatore recorded the highest increase, with aggregate workspace visits rising by 41% in the six months through May 2026 compared to the preceding six-month period. Jalandhar followed with a 25% rise, while Nashik recorded a 21% increase. Dehradun and Mohali registered gains of 19% and 17%, respectively.
To address localized demand, IWG added 43 new locations in India during the first half of 2026. Over the past two years, the platform expanded into cities such as Amritsar, Bhubaneswar, Calicut, Guwahati, Mangaluru, Mysuru, Nagpur, Trivandrum, and Vadodara. The expansion relies on a capital-light model in partnership with property owners, accounting for 95% of its recent signings.
Data from Vestian indicates that Tier-II cities host over 575 flexible workspace centers, representing nearly 29% of the national total, with flexible workspace costs up to 50% lower than in metro cities. Research from Colliers highlights that 40% of India’s population is projected to reside in urban areas in the coming years, positioning smaller cities as key beneficiaries of decentralized workplace strategies.
Christian Schmitz, CEO of International Workplace Group, said: “The sharp rise in workspace usage across India’s Tier-II and Tier-III cities shows how businesses and their people are embracing more flexible ways of working. Companies increasingly need workplace strategies that give their teams access to high-quality professional workspace wherever they need it, including closer to home.” He added that the model allows businesses to reduce fixed real estate commitments while enabling employees to shorten commutes.
Harsh Lambah, Country Head & VP Sales SAARC, said: “As companies look beyond the metros for their next phase of growth, Tier-II and Tier-III cities are giving them access to new markets and strong local talent. Ready-to-use professional workspace lets businesses set up teams and scale at their own pace without heavy upfront investment, and that growth is creating quality jobs across the country. Our capital-light strategy, built on managed partnerships with property owners, allows us to expand our network quickly and in step with that demand.”
