India’s artificial intelligence (AI) market is projected to grow significantly, from its current value of over $9 billion to more than $500 billion in the upcoming years. This growth is expected to position India as a key influencer of office demand and workplace transformation in the Asia Pacific region. The report by Colliers India emphasized that factors such as AI-driven workforces, demographic changes, energy security, climate concerns, and evolving global economic dynamics are reshaping office market strategies worldwide.
The report highlighted India’s emergence as a vital AI and talent center, driven by rapid digitalization, increased adoption of AI technologies, robust government backing, and a sizable skilled workforce. India contributes 2-3 million STEM graduates annually, making up nearly one-third of the global skilled talent pool. With a median age of approximately 29 years and a population exceeding 1.4 billion, India is well-placed to leverage its demographic advantage, especially as developed nations confront diminishing talent pools.
Major Indian cities like Bengaluru, Hyderabad, Delhi-NCR, Chennai, Mumbai, and Pune are recognized as leading technology talent acquisition markets in the APAC region. Arpit Mehrotra, Managing Director, Office Services, India, Colliers, stated that India’s competitive rentals, lower cost of living, and abundant young talent pool will continue to attract global firms. The report also pointed out that the growth of global capability centers (GCCs), particularly in AI, machine learning, engineering, and cloud computing, is expected to bolster office leasing demand in India.
In terms of sustainability, the report highlighted that green-certified buildings make up nearly two-thirds of India’s Grade A office stock. Moreover, India boasts over 420 million square feet of Grade A office buildings that are more than a decade old and offer retrofitting potential, representing an investment opportunity exceeding $5 billion.
