The findings, released at a leadership meet in Bengaluru, come from JLL’s India’s AI Revolution in Corporate Real Estate report based on its Global Real Estate Technology Survey 2025. The data shows the sector is at a decisive turning point—racing to adopt AI for cost optimization and space efficiency, yet struggling to convert experiments into measurable business value.

Adoption Exploded, Outcomes Didn’t

AI use in corporate real estate (CRE) has jumped from under 5% in 2023 to 91% in 2025, an 18-fold rise in just two years. However, execution gaps remain severe:

• 56% of organizations achieved only 2–3 AI objectives
• 26% achieved none at scale
• Only 5% achieved 4–5 objectives successfully

This reveals a widening divide between companies experimenting with AI and those actually benefiting from it.

Broken Tech Foundations Are the Real Problem

The biggest obstacle isn’t lack of interest—it’s outdated infrastructure.

• 88% of firms say at least three existing tech systems are failing
• 57% lack a clear AI strategy
• 29% cite talent shortages in technology leadership

Legacy systems are preventing clean data integration, which is essential for AI performance. As a result, many companies are attempting advanced automation on disconnected digital ecosystems.

Cost Pressure Is Driving Boardroom Urgency

Corporate leaders are pushing workplace teams to deliver real results fast:

• 93% of executives say reducing real estate costs is a top strategic priority
• 93% plan to invest in system upgrades
• 58% classify upgrades as a strategic imperative

The report predicts that by 2030, about 33% of workplace real estate heads will report directly to CTOs, up from 16% today—signalling a structural shift where office portfolios are managed like technology platforms rather than static assets.

Where Companies Are Using AI Most

Indian firms are focusing on high-impact use cases instead of small automation wins:

1. Portfolio optimization – 59%
   AI helps right-size office space, reduce lease waste, and cut costs.
2. Energy management – 54%
   Used to lower utility bills and improve sustainability metrics.
3. Real estate data workflows – 49%
   Fixing messy datasets for faster executive decision-making.

What Separates Winners From Strugglers

According to the report, companies that successfully scale AI consistently follow three steps:

• Audit existing tools and data before rollout
• Define measurable success metrics upfront
• Build cross-functional teams across IT, HR, finance, and workplace operations

Firms that skip these fundamentals tend to remain stuck in pilot mode.

Industry Takeaway

India’s corporate real estate sector isn’t lacking ambition—it’s facing an execution challenge. AI adoption is nearly universal, but real transformation will depend on fixing data systems, upgrading infrastructure, and aligning strategy with measurable outcomes.

In short: the AI race has begun, but only a handful are actually winning.

Also Read: A massive construction boom for data centers—the ‘digital warehouses’ that power our online world—is underway, fueled by the explosive growth of Artificial Intelligence. A recent report reveals a staggering $180 billion is being poured into these facilities across Asia. Mumbai is at the heart of this transformation, with huge new AI-ready campuses and a major push for green energy.

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These GCCs — offshore hubs set up by multinational companies for functions like technology, analytics, finance, and research — are no longer just back-office operations. They are now strategic global nerve centres, and India is their preferred destination.

Why This Matters to the Common Citizen

This surge isn’t just a corporate story. GCC growth affects everyday life:

• More white-collar jobs in cities
• Higher demand for housing near office hubs
• Metro rail and infrastructure expansion
• Growth in retail, restaurants, and local businesses
• Rising property values in emerging corridors

Simply put: where GCCs go, economic activity follows.

The City Leaders of India’s GCC Boom

Bengaluru — The Undisputed Capital

The city commands 34–39% of India’s GCC market with more than 900 centres. Its dominance comes from a deep tech talent pool, mature startup ecosystem, and strong IT credentials.

“The numbers tell a compelling story of sustained growth and maturation,” said Samantak Das, Chief Economist at JLL.

Hyderabad — Life Sciences Powerhouse

Holding 20–23% market share, Hyderabad has become India’s top GCC destination for healthcare, biotech, and pharma companies. Government incentives, infrastructure, and specialised talent have accelerated its rise.

Pune — The Balanced Performer

With 15–20% national share, Pune attracts multinationals due to quality of life, skilled workforce, and sector diversity across BFSI, automotive, IT, and engineering.

Chennai — Manufacturing + Tech Hybrid

Strong demand since 2023 has reinforced Chennai’s reputation as India’s automotive and manufacturing hub, supported by IT and engineering research centres.

Delhi NCR — Corporate Services Engine

The region is evolving into a GCC powerhouse for consulting, e-commerce, healthcare, education, and IT services due to its diverse economy.

Mumbai — Finance Command Centre

India’s financial capital continues attracting global banks and institutions setting up strategic capability centres focused on BFSI operations.

Tier-II Cities: The Next Big Story

A major shift is underway as companies move beyond metros to cities such as Ahmedabad, Kolkata, Jaipur, Coimbatore, Mysuru, and Kochi.

Why companies are choosing them:

• 10–35% lower operating costs
• Untapped talent pools
• Improving infrastructure
• Better work-life balance for employees

This signals a major decentralisation of India’s economic growth.

A Decade of Acceleration

Key long-term indicators from the report:

• GCCs drove 40% of India’s office leasing over the past decade
• Over 200 new GCCs entered India in the last two years
• Total footprint expected to cross 350 million sq. ft in 3–4 years
• US companies account for 70% of GCC demand

According to Rahul Arora, Senior Managing Director at JLL, Bengaluru’s leadership stems from its “robust talent pipeline and mature ecosystem,” making it the preferred destination for global firms.

What This Means for India’s Future

Experts say GCC expansion marks a fundamental shift: India is no longer just a low-cost outsourcing base. It is now a strategic global operations hub where companies build innovation, research, and decision-making capabilities.

For citizens, this translates into:

• Higher salaries in urban job markets
• Increased real estate demand
• Expansion of new business districts
• Stronger local economies

Conclusion

India’s GCC boom is not just an office leasing statistic — it is a transformation story. From Bengaluru’s tech corridors to emerging Tier-II hubs, the expansion is redistributing opportunity across the country.

As global companies diversify operations, India’s multi-city growth model is turning the nation into one of the world’s most important corporate ecosystems.

Also Read: India to Lead APAC Office Market Growth in 2026 Driven by Strong GCC Demand

The post 31 Million Sq Ft Boom: How India’s GCC Wave Is Creating Jobs, Offices, and Opportunities in Your City appeared first on Square Feat India.

This leap from 36% in 2015 to 47% in 2024 underlines India’s growing influence in the global corporate real estate landscape, positioning it as a strategic anchor amid shifting trade patterns, supply chain diversification, and macroeconomic disruptions.

India’s Office Market in Numbers

India’s leasing boom is powered by Global Capability Centres (GCCs), multinational firms, and third-party IT service providers, with the demand concentrated in key cities known for talent and infrastructure readiness.

What’s Fueling India’s Growth?

• Cost efficiency and deep talent pools
• Resilient infrastructure and flexible leasing formats
• Strategic realignment of global portfolios (China+N approach)
• Strong domestic consumption base and fiscal prudence

Knight Frank places India in the ‘low exposure, moderate resilience’ category of its Vulnerability Matrix, meaning the country has low dependence on external trade and high capacity to withstand global economic shocks—unlike more export-dependent economies such as South Korea and Singapore.

Industrial Sector Holding Steady

While cities like Shanghai and Beijing struggle with oversupply, Indian industrial hubs in Mumbai, NCR, and Bengaluru have maintained balanced vacancy levels thanks to consistent demand.

New formats such as build-to-suit and flexible leases are gaining popularity, reflecting a shift toward customisation and operational agility.

Shifting Trade Lanes and New Hotspots

Knight Frank’s report also notes that geopolitical factors, including a potential second Trump administration and changes in global tariff regimes, are redefining supply chains and real estate strategies across Asia.

• Southeast Asia (Vietnam, Indonesia) expected to see 15–20% rise in industrial demand
• India remains dominant in office leasing among services-driven economies

Expert View

“India’s rise to a 47% share of APAC leasing volumes is a testament to its robust fundamentals and strategic importance,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

“Corporate real estate strategy must now go beyond expansion—it must be about operational durability and cost performance,” added Tim Armstrong, Global Head, Occupier Strategy and Solutions.

Conclusion

India’s real estate sector is no longer just a cost-saving alternative—it is a cornerstone of global CRE strategy. With rising domestic demand, digital transformation, and supply-side maturity, India is now at the heart of APAC’s corporate property evolution.

Also Read: BFSI and Flex Spaces Drive Office Space Demand in Q3 2024

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While builders’ work accounts for 32% of fit-out costs in India—far lower than the APAC average of 41%—the cost of mechanical and electrical (M&E) services has surged to 29%, outpacing the regional average of 21%. This inversion in cost structure underscores a growing trend: India is cheap to build, but costly to equip.

Labour-Saving… But That’s Just One Part of the Puzzle

India’s strength lies in affordable labor. Builder’s work—typically the most labour-intensive component—is significantly cheaper, helping firms manage upfront costs. However, the savings are quickly offset by higher investments in infrastructure, especially where landlords provide minimal base build support.

Technology & Infrastructure: No Longer Optional

Indian workspaces are racing to become smarter. 17% of office fit-out budgets now go to Security, IT & AV, reflecting the growing demand for hybrid work support and tech-driven collaboration tools.

Another 16% is allocated to Furniture, Fixtures & Equipment (FFE)—often imported, and thus subject to taxes and currency fluctuations. Meanwhile, professional services account for just 5%, the smallest chunk of the spend.

A Shift Towards Sustainability

“Creating sustainable, high-performance workspaces is no longer just a trend—it’s a business imperative,” said Dr. Samantak Das, Chief Economist at JLL India. With employees demanding healthier, tech-integrated environments, companies are now more willing to spend on energy-efficient systems, smart features, and sustainable refurbishment—even if that means stretching CAPEX.

Interestingly, India is pioneering “reinstatement-lite” models, encouraging reuse of existing infrastructure—offering long-term savings and a lower carbon footprint.

What Indian Cities Are Spending On

• Delhi: Prioritizes builder’s works; lean on IT and security spending.
• Kolkata: Highest M&E share among metros.
• Pune & Bangalore: Reflect the national average; balanced across components.
• Hyderabad: Spends slightly more on builder’s work.
• Chennai: Invests heavily in Security, IT & AV—possibly the tech-friendliest office market.

Bottom Line:
India’s fit-out cost structure is changing. While labour may be 5x cheaper, other components—especially M&E—are driving budgets higher. For companies looking to build future-ready offices, balancing cost, tech, and sustainability is now mission critical.

Also Read: India’s Office Market Poised for Strong Growth in 2025, Led by Engineering, BFSI, and Flex Spaces

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