The Rise of Coworking Spaces in Non-Metro Cities of India

Factors Behind the Rise of Coworking Spaces in Non-Metro Cities

The rise of coworking spaces outside major cities is due to major shifts in how we work, better infrastructure, and a focus on local growth.

Here's a look at what's fueling this change:

1. Increase in Tier-2 & Tier-3 Startups

Smaller cities are seeing a boom in startups, largely due to government programs like Startup India. By December 2024, India's coworking space market saw 157,066 businesses using these flexible environments. This offered them affordable, ready-to-use setups, bypassing complex and costly traditional leases.

2. Remote Work is the New Normal

With the increase in hybrid work models and remote roles, people prefer to work from anywhere. For a better quality of life, professionals are moving back to non-metro areas, and coworking spaces provide the structure they need away from home.

3. Expansion of Corporations into Smaller Markets

Large companies are now looking at smaller cities to set up satellite offices. Coworking spaces mean big companies can set up shop without the headache of building an office from the ground up.

4. Retaining Local Talent

Coworking spaces are a game-changer for smaller towns because they help keep talented people from leaving their hometowns. This not only keeps local professionals happy and employed but also boosts the economy and creates more jobs in their local areas.

5. Government Push for Digital & Startup Ecosystems

With programs like Digital India and a smart-city infrastructure, the government is helping small cities prepare for coworking. Chennai, for example, is set to have over 12 million sq ft of office space by 2026, which is preparing the city for a lasting coworking environment.

Cities at the Forefront of the Coworking Revolution

The coworking trend is now booming in lively, smaller cities across India! This growth is due to the rise of digital tech, available real estate, and a burst of new startups. Let’s explore where this trend is shining the brightest. Here are some standout locations:

• Indore: This tech-savvy and clean city is a magnet for digital startups, with smart-city initiatives boosting coworking.
• Jaipur: The "Pink City" is attracting creative and IT professionals, its lifestyle and infrastructure make it perfect for shared workspaces.
• Coimbatore: Once mainly industrial, this city is now digitally focused, and demand for hybrid workspaces is skyrocketing here.
• Lucknow: Surprisingly, it's a growing hub for regional branches and professionals who want a metro-style office without leaving home.
• Chandigarh: With a high quality of life and consistent commercial growth, the coworking scene thrives here the most.
• Bhubaneswar: Bhubaneswar is fast becoming a hub for tech and consulting, and the demand for flexible workspaces there is growing rapidly.

Benefits of Coworking Spaces in Non-Metro Cities

Working from upscale metros can be heavy on the wallet and your motivation, but coworking spaces in non-metro cities offer a cost-effective, vibrant alternative. With great community spirit and offices set up and ready to go, these places help startups, freelancers, and remote workers thrive without the usual costs of a traditional office.

Here's what makes these spaces work in smaller cities:

1. Affordable Pricing

Say goodbye to sky-high city rents! Coworking spaces in smaller towns offer affordable options. You get all the perks without breaking the bank, and this is perfect for startups and freelancers who want quality without the metro price tag.

2. Ready-to-Use Configurations

These spaces are ready to use, so you can just walk in and start working. They are equipped with High-speed internet, furniture, printers, and even meeting rooms to make office life smooth.

3. Community-Driven Networking

Remote work makes you feel lonely. Coworking spaces change that by bringing together local entrepreneurs, freelancers, and teams, which often leads to surprising new partnerships.

4. Flexible Short-Term Solutions

These spaces come without being bound to traditional long leases or high deposits. You can rent these coworking spaces monthly, weekly, or even by the day, which is perfect for uncertain growth phases.

5. Boosted Productivity Outside the Home

Working from home can sound appealing, but it's easy to get distracted. Coworking spaces offer a solution by providing a structured environment where you are surrounded by like-minded professionals and can stay productive.

6. Local Connections & Business Support

Ever feel like you're missing out on the local startup environment? Coworking spaces are like a friendly bridge, hooking you up with workshops, mentors, and even investor meet-ups in your community.

7. Customisation & Tiered Access

With coworking spaces, you get many options, including hot desks, dedicated desks, lockable offices, and shared spaces, so it is easy to scale up or down anytime. You can even set up a presence without establishing an office space with a virtual office.

Beneficiaries of the Coworking Transformation

The rise of coworking spaces in non-metro cities is reshaping careers and communities. Let’s find out who is benefiting most from this shift:

1. Startups and Founders from Small Cities

Local founders and startups no longer need to head to Delhi or Bengaluru. With the right support, they’re scaling businesses where they are.

2. Freelancers and Digital Nomads

Freelancers, such as writers, designers, and coders, choose these spots to stay close to their families while maintaining a professional work environment.

3. Corporate Teams and Branch Offices

Large companies are now setting up regional offices in coworking spaces. This helps them cut down on costs and gives them more flexibility.

4. Local Communities and Real Estate Owners

Landlords are leasing their empty or unused buildings, transforming them into profitable coworking spaces that inject new life into local areas.

Challenges to Consider

No matter how good something is, it almost always has its downsides. Here are a few challenges that smaller cities might encounter when it comes to shared office spaces:

• Not Enough Space: Everyone wants in on coworking, but many smaller towns don't have enough places yet.
• Spotty Internet: Sometimes, the power or internet can cut out, which isn't good for professionals as it disrupts the workflow.
• It's Hard to Find Your Tribe: If you're in a highly specific industry, it might be tougher to find other pros like you to network with.
• No Luxury Perks: You won't always find those fancy, high-end office vibes common in bigger cities.
• Tough to Grow: It can be tricky for coworking companies to maintain consistency and high quality across many smaller spots.
• Lack of Awareness: Many small-town businesses still use old-school leases because they haven't heard about the better coworking options available.

Future of Coworking Spaces in Non-Metro Cities

The future of coworking looks bright as India's coworking industry is expected to hit $2.91 billion by 2030. The global coworking market is also projected to grow significantly to $27.24 billion by 2033, reaching a strong 13.8% estimation each year. And guess what? Non-metro cities are going to be at the heart of this exciting change.

Market Growth Reports has further revealed that 1,500 new coworking centres are set to pop up in India's smaller cities and towns by the end of 2025. This means coworking will become a key part of how people work in these regions. Operators now prioritise Tier-2 and Tier-3 locations, building tech-forward spaces with well-being features and AI-powered management.

More and more people, from freelancers to big companies, are realising the benefits of this change. As these coworking spaces become more affordable, easier to access, and of better quality, they'll completely change how and where people work in India.

Find the Right Coworking Space Near You

Dreaming of a workspace that feels like it’s right in your neighbourhood? Office Hub helps you find flexible offices right where you live, so you can grow your brand without leaving the comfort of your hometown.

No matter if you're a freelancer, a founder, or leading a team, we'll help you find the perfect office in a city that matches your vibe and ambitions, all without breaking the bank. Need custom solutions, local pros, and a quick setup? We've got your back.

Get in touch with our flexperts today and let them set you up in a space that works for your business and budget!