Indian office demand to grow, AI to shape real estate: CBRE survey

A CBRE survey indicates strong confidence in India's office market, with 77% of occupiers expecting portfolio growth over the next two years. AI, flexible workspaces, and location are emerging as key factors shaping corporate real estate strategies.

India's office market is likely to maintain its expansionary trajectory over the next two years, with occupiers increasingly seeking high-quality, well-connected workplaces while integrating artificial intelligence (AI) into their real estate strategies, according to CBRE's 2026 India Office Occupier Survey.

Strong Expansion Outlook

The survey indicates that 77 per cent of occupiers expect their India office portfolios to grow over the next two years, signalling continued confidence in office demand despite global uncertainties.

The expansion outlook is expected to be supported by sustained business growth, GCC expansion and rising demand from technology, BFSI and engineering and manufacturing firms. CBRE said the share of corporate occupiers pursuing an aggressive expansion strategy has nearly doubled from the previous year, with 30 per cent of firms targeting a significantly larger office footprint over the next two years.

AI's Growing Influence on Leasing

The survey, based on responses from more than 200 CXOs conducted between April and June 2026, also found that AI is emerging as a key factor shaping future leasing decisions. While 93 per cent of respondents reported some stage of AI adoption, 57 per cent said AI had not yet had a measurable impact on their leasing strategy. However, evolving AI automation dynamics ranked as the top factor expected to influence leasing decisions over the next 12-24 months.

Rise of Flexible Workspaces

CBRE expects flexible workspaces to become an increasingly important component of occupiers' portfolios, with 67 per cent of respondents planning to include flex space within two years, up from 58 per cent currently. This points to a continued shift towards a "core + flex" model, allowing companies to balance long-term workplace requirements with greater agility and cost management.

Location and Connectivity Remain Critical

Location and connectivity are also expected to remain critical to future office strategies. Bengaluru, Hyderabad, Pune and Chennai continue to attract large-scale requirements, while 65 per cent of occupiers considering Tier-II and Tier-III cities cite access to emerging talent pools as a key consideration.

Nearly half of respondents prefer established core micro-markets, reflecting the importance of mature infrastructure and talent catchments. Commute infrastructure could increasingly determine office location decisions, with 70 per cent of occupiers prioritising commute infrastructure and 95 per cent identifying traffic congestion and commute as a threat to operations and employee experience.

CBRE's findings suggest that India's office market is moving towards an "adaptive" workplace model, where expansion, flexibility, AI-enabled infrastructure and employee accessibility increasingly shape corporate real estate decisions. (ANI)

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