India’s office market shifts towards quality, AI-ready workplaces: Colliers
Productivity and business performance remain the primary drivers of office space requirements, followed by collaboration and innovation, the report said.
India and Southeast Asia continue to emerge as a growth-oriented market cluster, with companies focusing on portfolio resilience, operational efficiency and access to skilled talent.
Despite geopolitical uncertainties, 34 per cent of occupiers in the cluster are pursuing growth and actively expanding their operations.
India, in particular, has emerged as an attractive market for large corporations, with businesses increasingly investing in premium office spaces and reconfiguring existing workplaces to improve employee experience and performance.
“India remains a high-growth office market in the APAC region, underpinned by a resilient economy and sustained occupier expansion. Beyond strong demand prospects, occupiers increasingly view the office as a strategic enabler of business performance, talent attraction and collaboration,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
He said 21 per cent of occupiers in India and Southeast Asia prioritised upgrading to higher-quality office spaces, while an equal proportion focused on reconfiguring their workplaces. The trend reflected a shift towards value creation, with businesses investing in work environments that support evolving workstyles and long-term growth.
AI is expected to have a significant impact on workplace strategies, with all respondents anticipating the creation of specialised roles requiring new skills, capabilities and collaboration models.
Productivity and output are expected to be the areas most affected, followed by changes in skills, job roles and workforce structures.
However, the report challenges the assumption that AI adoption would lead to a widespread reduction in office space.
Nearly 47 per cent of respondents expect AI to generate demand for different workplace formats and space types, particularly collaborative and technology-enabled environments.
The survey also found that companies across the Asia Pacific region were prioritising workplace optimisation over office consolidation amid continuing cost pressures.
About 75 per cent of respondents identified occupancy costs as a major factor influencing workplace decisions. However, 40 per cent planned to renew existing leases, while 29 per cent intended to maintain their current office footprint.
The findings indicate that companies are seeking to improve the value derived from existing workplaces rather than simply reducing office space, with investments increasingly directed towards talent, productivity and business growth.
“The workplace conversation has evolved significantly over the past few years. For most organisations, the question is no longer whether employees should be in the office, but how the workplace contributes to productivity, collaboration, innovation and business performance,” said Mike Davis, Managing Director, Occupier Services, Asia Pacific, Colliers.
He said organisations generating the greatest value were those aligning workplace, technology and talent strategies with measurable business objectives.
Cost efficiency, talent availability and talent concentration continue to influence workplace and location decisions across the Asia Pacific region. While geopolitical risks remain a consideration, operational efficiency and access to skilled workers continue to be key factors shaping corporate expansion plans, the report added.
