Over the next few years, tier-II cities would witness a higher number of modern office developments, including flex spaces replete with amenities that are appealing to global and domestic occupiers. Further, prominent developers would bring international standards and a proven track record to enhance the real estate profile of tier-II cities.
Global and domestic firms are likely to adopt several entry strategies to establish and expand their footprint, including flex spaces and traditional office spaces. Established IT services firms would likely explore campuses for their offices.
Global firms are likely to see the appeal of tier-II cities for their GCCs, aided by cost considerations and the availability of skilled talent. Tier-II cities are gradually emerging as hubs for technology talent, bolstered by higher educational institutions and professional institutes.
As occupiers mark their entry in tier-II cities and the quality of life improves, talent retention in these cities would emerge as a game-changer. India’s budding start-up ecosystem is likely to enhance experienced talent for specific domains such as artificial intelligence and machine learning.
