India's artificial intelligence (AI) market is projected to expand more than 50-fold — from over $9 billion today to upwards of $500 billion over the coming decades — cementing the country's position as a pivotal driver of office demand and workplace transformation across the Asia Pacific (APAC) region, according to a report released on Tuesday, 26 May by Colliers India.

Key Findings from the Colliers Report

The report identifies AI-enabled workforces, demographic shifts, energy security, climate risks, and evolving global economic dynamics as the central forces reshaping office market strategies worldwide. India, it argues, is uniquely positioned to capitalise on all of these simultaneously.

Among the most striking data points: India adds 2–3 million STEM graduates annually, accounting for nearly one-third of the global skilled talent pool. With a median age of approximately 29 years and a population exceeding 1.4 billion, the country holds a demographic edge that developed economies — many facing shrinking workforces — cannot easily replicate.

Cities Leading the Charge

Major Indian metros are already registering as top technology talent acquisition markets in the APAC region. Bengaluru, Hyderabad, Delhi-NCR, Chennai, Mumbai, and Pune all feature prominently in the rankings, reflecting the depth and geographic spread of India's tech ecosystem.

Arpit Mehrotra, Managing Director, Office Services, India, Colliers, said: 'India will continue to remain a preferred destination for global firms owing to competitive rentals, relatively lower cost of living and availability of a large and relatively younger talent pool.'

GCCs and Office Leasing Demand

The continued expansion of Global Capability Centres (GCCs) — particularly in artificial intelligence, machine learning, engineering, and cloud computing — is expected to further strengthen office leasing demand across the country. This comes amid a broader global trend of multinational firms deepening their India footprints as geopolitical and cost pressures prompt a rethink of talent strategy.

Notably, rapid digitalisation, rising AI adoption, and strong government support have collectively accelerated India's emergence as a key AI and talent hub, the report noted.

Sustainability and Retrofitting Opportunity

On the sustainability front, green-certified buildings currently account for nearly two-thirds of India's Grade A office stock. The country also holds more than 420 million square feet of Grade A office buildings that are over 10 years old and carry significant retrofitting potential — representing an investment opportunity of over $5 billion, according to the report.

As AI adoption accelerates and GCC pipelines deepen, India's office market is poised for a structural demand upgrade — with sustainability and talent density increasingly determining which cities and buildings capture the next wave of global investment.