India’s office real estate market is seeing renewed growth as the rapid adoption of artificial intelligence encourages technology companies to expand their physical workspaces.
Industry experts say increasing AI investments by tech firms and startups are driving higher demand for office spaces in key business hubs such as Bengaluru, Hyderabad, Pune, and Chennai. Both global technology companies and AI-focused startups are growing their teams and leasing larger offices as their operations expand.
According to Table Space, several AI firms have leased offices in the past three months, ranging from 50,000 to 100,000 sq ft, mainly in Bengaluru and Hyderabad. The company hosts about 40 AI firms and is introducing AI and IoT-enabled smart workstations and intelligent building systems to support them.
Real estate consultants say Global Capability Centres (GCCs) and major tech firms are driving rising office demand. According to Anarock Group, companies such as L&T Technology Services, Tesco, SAP, Walmart, and Airbus are expanding AI and engineering hubs in India. Flexible workspace providers like WeWork India, IndiQube, Incuspaze, and Table Space have also leased offices for AI startups, ranging from 50 to 700 seats.
The broader commercial real estate market is already reflecting this trend. According to Savills India, India’s office sector recorded gross absorption of 75.2 million sq ft in 2025, with technology companies contributing about 34 per cent of the total leasing activity. Global Capability Centres alone accounted for around 28 million sq ft, or nearly 38 per cent of the total office leasing.
Experts also note that AI firms often prefer ready-to-use Grade A office spaces with advanced infrastructure rather than building facilities from scratch. Many companies that initially leased around 100 seats have expanded to 800–1,000 seats, highlighting rapid team growth and the rising need for collaborative workspaces.
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