AI adoption is widespread among Indian companies, but it has yet to put a dent in office demand. A new CBRE survey found that 77% of office occupiers expect to expand their India portfolios over the next two years.
The India Office Occupier Survey found that 93% of respondents have reached some stage of AI adoption. Despite that adoption, 57% of occupiers said AI has had no impact on their leasing decisions so far.
AI automation was the most commonly cited factor expected to influence leasing over the next 12 to 24 months, with 34% of respondents identifying it as a consideration.
Companies Want Better Space
Expansion is not the only priority. Nearly half of occupiers, 47%, plan to combine expansion with consolidation over the next two years, while 55% identified moving into higher-quality buildings as their primary relocation strategy.
Flexible workspace is also gaining ground. Sixty-seven percent of occupiers expect flex space to form part of their portfolios within two years, compared with 58% currently.
Private managed offices were the most preferred flexible format, selected by 42% of respondents.
Bengaluru Leads Expansion Plans
Established markets remain popular, with 85% of respondents already operating in or considering expansion to Bengaluru, Pune or Hyderabad. Bengaluru led the group, with 66% of occupiers either already present or considering expansion there.
Commute infrastructure remains a major consideration. Seventy percent of respondents prioritize it when selecting offices, while 95% view traffic and commuting as threats to operations and employee experience.
The survey also found strong expansion plans among Global Capability Centers, with 75% expecting their India office portfolios to grow over the next two years.
India’s office stock crossed 1 billion square feet in the April-June 2026 quarter, according to CBRE. For now, the data suggests AI is influencing how companies think about future offices more than reducing their demand for them.
