From Gurgaon to Guwahati: Smaller Cities Are Redrawing India’s Office Map

By: Sakshi Prakash

Date:

May 28, 2025

A silent but decisive shift is under way in India’s commercial real-estate market. Corporates that once defaulted to Bengaluru, Mumbai or Delhi-NCR are now signing marquee leases in Coimbatore, Mysuru, Bhubaneswar and other Tier-II cities. The trigger? A powerful mix of lower rentals—30-50 % below metro averages—an abundant local talent pool and state-led infrastructure upgrades that support hub-and-spoke office models popular in the hybrid-work era.

State Street set the tone in March with a 2.1-lakh-sq-ft deal in Coimbatore, while Bosch, Infosys and Amazon have together taken over a million square feet in similar markets. Experts at Colliers and ANAROCK note that half of India’s start-ups now originate in Tier-II/III towns, accelerating flex-space supply, which grew fourfold between 2020-24. Flagship IT parks—from Nagpur’s MIHAN to Jaipur’s Mahindra World City—add further magnetism. Yet analysts caution that inconsistent digital bandwidth, limited Grade-A stock and slower civic upgrades could cap growth unless addressed swiftly. For now, though, cost arbitrage and fresh talent keep the momentum firmly on the side of India’s “next-gen” business hubs.

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