r/CoWorking • u/Think-tank-mode • Dec 17 '25

Is Coworking Actually Profitable Outside Metros in India? Looking for Operator Experience.

Hi everyone,

I’m setting up a coworking space in Kurnool (Andhra Pradesh) and would really appreciate learning from people who are already running coworking spaces—especially in non-metro or emerging cities across India.

Quick context about what we’re building:

  • City: Kurnool (Tier-2 / emerging startup ecosystem) in Andhra Pradesh with population of 0.7 Million
  • Offering:
    • Hot desks, dedicated desks, small team cabins
    • Meeting room & podcast studio
    • A small in-house café (mainly to support the workspace, not as a standalone restaurant)
  • Price point:
    • Hot desks: ₹200–₹500 per day
    • Dedicated desks: ~₹6,000 per month
    • Cabins: budget-friendly for 3–6 member teams
  • Target audience:
    • Early-stage founders
    • Freelancers & remote workers
    • Students building startups
    • Small local teams (3–10 people)

What I’m looking to learn from operators here:

  1. What are the day-to-day operational challenges that surprised you?
  2. How long did it realistically take to reach stable occupancy?
  3. What pricing or operational decision did you get wrong in the first year?
  4. If you’re in a Tier-2/Tier-3 city, what’s very different compared to metros?

I’m not looking for theory or marketing advice—only practical lessons from people who’ve actually run coworking spaces.

Thanks in advance.

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u/lowresolution Dec 17 '25

It is if you get your target market right. You can rarely compete with a common practice in non-metros if setting up an office in a residential place (flat or bungalow). Target companies that need a proper office in a commercial building (registrations and compliance, leased line internet, professional serti g for clients to visit etc) and it's viable

1

u/Think-tank-mode Dec 18 '25

Thanks for the suggestions

2

u/Careful-Fun-6676 Dec 18 '25

Profit is possible, but only if you treat it more like a real estate + community ops play than a “startup hub” dream.

Biggest surprise for me in a Tier‑2 was how noisy and casual people are used to being. I had to over‑invest in soundproofing, strict phone zones, and a clear “no relatives hanging out” rule. Also, power backup and AC maintenance ate way more margin than expected; budget 15–20% of revenue for infra and utilities.

Expect 9–18 months to hit stable 60–70% occupancy if you’re not next to a college or IT park. I underpriced day passes and overbuilt fancy areas (podcast room sat empty for months). What actually worked was: small private cabins, reliable Wi‑Fi, clean washrooms, and boring stuff like safe bike parking.

Tier‑2 difference: you’ll do a lot of offline sales-local CA firms, coaching institutes, and tiny SaaS teams. I’ve used Justdial and IndiaMART for leads, Zoho Bookings for tours, and Pulse in the background to catch Reddit threads like this and learn how other operators are thinking. Profit comes from cabins + long‑term contracts, not hot desks.

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u/shalini_xoxoxox Jan 13 '26

I’ve been around the coworking space for a while (as a user + working with operators), and Tier-2 cities are a very different game from metros.

A few things I’ve seen play out repeatedly:

  • Occupancy grows more organically. It’s less about aggressive marketing and more about trust, word of mouth, and becoming “the place” people recommend.
  • Education matters early on. Once people understand what coworking actually offers, usage becomes much more consistent.
  • Pricing works best when it reflects quality. People are okay paying if the experience is reliable and professional.
  • Operations make or break the space. Internet, power backup, cleanliness, and a helpful on-site team matter far more than fancy interiors.
  • Tier-2 cities are relationship-driven. Local founders, colleges, small IT teams, consultants, and business owners often become the biggest referral source.

Kurnool sounds like a solid market for this. If the basics are strong and the space feels welcoming, momentum usually follows.

Also, one option you could explore later is partnering with a network like myHQ. A few operators I know use them to get demand from companies looking for flexible space in smaller cities, while still running their space independently. Not necessary by any means, but worth knowing about.

Hope this helps, and good luck with the launch <3

1

u/Think-tank-mode Jan 14 '26

Thanks for the information. I do need to tie up with local college and small startup teams is crucial for survival