57% of Indian office occupiers say AI has no impact on leasing decisions: CBRE
Synopsis
Despite near-universal AI adoption among Indian corporates, 57% of office occupiers say it has not changed their leasing calculus — yet. CBRE's survey of 200+ firms reveals most are still in the experimental phase, but the shift from 'what kind of space' to 'how much space' may be closer than the headline number suggests.
Key Takeaways
57 per cent of Indian office occupiers say AI has no material impact on their leasing decisions, per a CBRE South Asia report released on 27 August 2025 .
93 per cent of over 200 occupiers surveyed are at some stage of AI implementation, but 59 per cent remain in early or exploratory phases.
Approximately a third of occupiers are at advanced or scaled AI adoption, already reshaping talent deployment and workspace use.
Occupiers are expected to prioritise high-quality workplaces supporting talent attraction and advanced technology — sustaining the flight-to-quality trend.
A section of occupiers anticipates AI driving workforce growth , potentially increasing rather than reducing office space demand.
A majority of office occupiers in India — 57 per cent — say artificial intelligence (AI) has no material impact on their leasing decisions, even as corporate AI adoption accelerates, according to a CBRE South Asia report released on 27 August 2025. The findings, drawn from a survey of over 200 occupiers, reveal a significant lag between AI strategy and real estate action.
Where AI Adoption Stands
According to the CBRE report, 93 per cent of surveyed occupiers are at some stage of AI implementation. However, roughly 59 per cent remain in early or exploratory phases — testing proofs-of-concept and mapping systemic changes before committing capital or restructuring physical assets.
Only about a third of the cohort has reached an advanced or scaled adoption stage, where AI is already driving immediate changes in talent deployment and workspace utilisation.
Why Leasing Decisions Remain Unchanged — For Now
The disconnect between AI adoption and leasing behaviour reflects the pace at which organisations are moving. Most occupiers are still assessing how AI will reshape their workforce before making commitments on physical space. Notably, this mirrors a broader global pattern where technology transformation precedes real estate recalibration by several quarters.
While immediate changes to leasing strategies are not anticipated by the majority, the report indicates that occupiers are likely to prioritise high-quality workplaces that support talent attraction, innovation, and advanced technology needs — a trend analysts refer to as 'flight to quality'.
What CBRE Executives Said
Anshuman Magazine, Chairman and CEO — India, South-East Asia, Middle East and Africa, CBRE, said: 'While AI adoption is becoming increasingly widespread, business maturity and the pace of deployment will ultimately determine its impact on workforce requirements and, consequently, future leasing decisions.'
He added: 'As organisations continue to transition from experimentation to scaled implementation, the implications for headcount, workplace strategies, and space demand are likely to evolve over time.'
Ram Chandnani, Managing Director, Leasing Services, India, CBRE, noted that the flight-to-quality trend remains firmly intact, with premium workplaces continuing to play a critical role in attracting and retaining talent. 'In effect, AI is influencing the type of space occupiers seek well before it alters the quantum of space they require,' he said.
AI as a Driver of Workforce Growth
A section of occupiers surveyed anticipates AI creating new opportunities for workforce expansion, as organisations scale emerging capabilities and technology-led functions. This suggests that for some firms, AI adoption could eventually translate into more office space demand rather than less — a counterintuitive outcome that challenges the narrative of AI-driven workplace contraction.
Real estate decisions for a large proportion of organisations are expected to be shaped by workforce dynamics and the measurable business impact of their AI strategies, the report noted.
What to Watch
As more occupiers move from pilot programmes to full-scale AI deployment, the real estate implications are likely to sharpen. The next 12 to 18 months will be telling: if headcount growth tracks AI-led productivity gains, demand for quality office space in key Indian markets could hold firm or even rise despite automation pressures.
Point of View
And real estate decisions — which involve multi-year lease commitments — are the last to move. The more consequential finding is that AI is already reshaping the type of space firms want, not just the quantum. If flight-to-quality demand holds while AI eventually compresses headcount, India's Grade-A office market could see a bifurcation: premium assets stay tight, secondary stock softens. That story is not yet visible in leasing data, but CBRE's own survey plants the early signal.
NationPress
27 Aug 2026
Frequently Asked Questions
What does the CBRE survey say about AI and office leasing in India?
The CBRE South Asia survey of over 200 office occupiers found that 57 per cent say AI has no material impact on their current leasing decisions. Most firms are still in early AI adoption phases and have not yet restructured their physical real estate strategies.
How widespread is AI adoption among Indian office occupiers?
According to the CBRE report, 93 per cent of surveyed occupiers are at some stage of AI implementation. However, roughly 59 per cent remain in early or exploratory phases, while only about a third have reached advanced or scaled deployment.
Will AI eventually reduce demand for office space in India?
Not necessarily in the near term. While AI may influence how space is used, CBRE executives indicate it is currently affecting the type of space sought rather than the total quantum. Some occupiers even anticipate AI-driven workforce growth increasing space demand.
What is the 'flight to quality' trend mentioned in the CBRE report?
Flight to quality refers to the preference among occupiers for premium, high-specification workplaces that support talent attraction, innovation, and advanced technology infrastructure. CBRE's Ram Chandnani noted this trend remains firmly intact despite AI disruption.
When will AI begin to meaningfully affect office leasing decisions in India?
According to CBRE's Anshuman Magazine, the timeline depends on business maturity and the pace of AI deployment. As organisations move from experimentation to scaled implementation, impacts on headcount, workplace strategy, and space demand are expected to evolve — likely over the next 12 to 18 months.
