India's Office Market: Embracing AI and Flexibility Amid Expansion

India's office market is set for growth over the next two years as businesses prioritize high-quality workspaces and AI integration. CBRE's survey reveals significant expansion plans, with AI and flexible office solutions playing crucial roles in future leasing strategies, especially in major cities like Bengaluru and Tier-II locales.

As per CBRE's 2026 India Office Occupier Survey, India's office sector is poised for substantial growth over the next two years. Companies are increasingly demanding high-quality, well-connected workspaces while integrating artificial intelligence (AI) into their real estate strategies. The survey revealed that 77% of office occupiers anticipate their portfolios will expand, underscoring strong confidence despite global challenges.

This optimistic outlook is fueled by persistent business growth, coupled with expansion in the Global Capability Centers (GCC), and rising demand from technology, BFSI, and engineering sectors. Notably, the percentage of corporate occupiers with aggressive expansion plans has nearly doubled, with 30% eyeing significant office enlargements. The inclusion of AI is becoming vital in lease decisions, although only 57% have seen its tangible effects thus far. Yet, AI's influence is expected to reshape leasing strategies profoundly over the next two years.

Flexible workspaces are becoming crucial; 67% of occupiers intend to incorporate them into their strategies, enabling a 'core + flex' model for greater adaptability and efficiency. Major cities like Bengaluru and emerging Tier-II and Tier-III cities remain pivotal for office expansion, influenced heavily by commute infrastructure and talent accessibility. The CBRE findings suggest a shift towards adaptable workplaces driven by expansion, flexibility, and AI-enhanced infrastructure.