1 week ago
AI Has Not Yet Reduced India’s Office Expansion Plans
Many companies in India are using or testing artificial intelligence.
However, most companies do not yet think AI means they need fewer offices.
Instead, 77% plan to grow their office space during the next two years.
Some companies want better buildings, easier commutes and flexible offices rather than simply more desks.
Bengaluru, Pune and Hyderabad are among the most popular places for expansion.
Global Capability Centres are also planning to grow in India.
Most companies are still waiting to see how AI changes jobs and workplace needs.
This means AI has not yet reduced demand for Indian offices.
CBRE’s 2026 survey found 77% of office occupiers expect their India portfolios to grow within two years.
Although 93% of respondents report some AI adoption, 57% say it has had no measurable leasing impact so far.
Thirty percent of firms plan to increase their office footprint by more than 30%, while 47% expect to combine expansion with consolidation.
Bengaluru, Pune and Hyderabad remain leading destinations, with 85% of occupiers present in or considering expansion to those cities.
Flexible workspace is becoming more important: 67% expect it to form part of their portfolios within two years, compared with 58% currently.
- Who
- Indian office occupiers, including technology, BFSI and Global Capability Centre respondents, surveyed by CBRE Research.
- What
- The survey reports continued office expansion plans despite widespread AI adoption, alongside growing interest in higher-quality and flexible workspace.
- Where
- Across India, with Bengaluru, Pune and Hyderabad among the leading expansion destinations.
- When
- The survey was conducted from April to June 2026, and the report was published on August 20, 2026; the outlook covers the next two years.
- Why
- Companies cited business growth, the continuing role of physical workplaces, talent access, better-quality buildings and commute infrastructure; AI’s effect remains uncertain for many firms.
AI May Eventually Reshape Office Demand
Expansion Continues Despite AI
Effect on leasing
AI May Eventually Reshape Office Demand
AI automation dynamics were the highest-ranked factor expected to affect leasing decisions over the next 12 to 24 months, cited by 34% of occupiers.
Expansion Continues Despite AI
A majority, 57%, reported no measurable AI impact on leasing so far, and 77% still expect their India portfolios to grow.
Workforce outlook
AI May Eventually Reshape Office Demand
Companies are assessing how AI may change talent requirements, workflows, automation and physical workspace use.
Expansion Continues Despite AI
The survey found no broad expectation of falling headcount: 64% expressed a neutral-to-positive view of AI’s workforce effect, including 12% expecting increased headcount.
Timing of change
AI May Eventually Reshape Office Demand
AI’s effects are more visible among organisations further along in adoption, including changes in talent deployment and workspace use.
Expansion Continues Despite AI
With 59% still at a nascent adoption stage and many firms testing proof-of-concepts, organisations are largely taking a wait-and-watch approach before changing real-estate decisions.
Key facts
- Survey sample
- More than 200 CXOs overseeing office portfolios across several Indian markets.
- Portfolio growth
- 77% of respondents expect their India office portfolios to grow over the next two years.
- AI adoption
- 93% report that their firms are at some stage of AI adoption.
- Current leasing impact
- 57% say AI has had no measurable impact on leasing so far.
- Flexible workspace
- 67% expect flexible workspace to form part of their portfolios within two years, up from 58% currently.
- Office stock
- India’s office stock crossed 1 billion square feet during April-June 2026.
- Leading destination
- 66% are already operating in or considering expansion to Bengaluru.
Quotes
CBRE
The commercial real estate research organisation that conducted the office occupier survey
“A large proportion of organisations are likely to adopt a wait-and-watch approach”
financialexpress.com
Sources
Related news
AI Has Little Immediate Impact on Indian Office Leasing
India’s Flex Workspace Boom Spreads Beyond Traditional Major Markets
GCC Expansion and Tight Supply Sustain India Office Growth
Foreign BFSI Firms Drive Record GCC Office Leasing in India
India’s Flexible Workspace Leasing Surges 68.4% in H1 2026
India’s Office Stock Surpasses 900 Million Sq Ft in H1
India’s GCCs Shift From Back Offices Toward Innovation
Indian states target 1.18 million jobs, 1,380 new GCCs
Outcome-based IT services no longer optional, says Nasscom's Rajesh Nambiar
India fresher hiring shifts beyond IT with AI, GCCs rising
