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The biggest obstacle isn’t lack of interest—it’s outdated infrastructure.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

The post AI Boom or Illusion? Only 5% of Firms See Real Results Despite Massive Adoption in Corporate Real Estate appeared first on Square Feat India.

Flex Spaces Surge in India

In India, flex spaces have become a significant component of the commercial real estate market. Since 2019, the stock of flex spaces has doubled, surpassing 50 million square feet (msf) by the second quarter of 2024. The share of flex spaces in occupiers’ portfolios has grown from 5-8% in 2019 to approximately 10-15% in 2024. This surge is driven by the increasing demand for adaptable work environments that cater to dynamic business needs.

“India is a leading player in the APAC flex market, with a penetration rate of 7% compared to 3-4% in other regional markets. The robust growth is evidenced by significant expansions from leading flex operators across major cities. In the first half of 2024 alone, there was 4.4 million square feet of flex leasing. We expect demand to potentially surpass the 2023 high of 8.7 million square feet by year-end,” said Arpit Mehrotra, Managing Director of Office Services at Colliers India.

Key Trends Shaping Corporate Real Estate

Colliers’ report identifies five crucial trends transforming corporate real estate strategies:

1. Enhanced Enterprise Resilience: Companies are focusing on flexibility within their real estate portfolios to withstand market fluctuations and adapt to changing needs. Globally, 80% of CRE leaders plan to reduce or maintain their office space by 2026, highlighting a shift towards more flexible and optimized real estate assets.
2. Workplace Transformation for Talent Management: The rise of hybrid working models is driving changes in workforce management. 59% of CRE leaders globally are expected to use labor market analytics more proactively, underscoring the importance of data-driven decision-making.
3. Artificial Intelligence and Data Integration: AI and data analytics are revolutionizing real estate strategies, enhancing efficiency, and optimizing resource allocation. 31% of CRE leaders see AI as a key area for organizational transformation in the next five years.
4. Diversification in CRE Partnerships: There is a growing trend towards adopting multiple CRE partner models to improve service delivery and operational flexibility. 98% of CRE leaders plan to either maintain or increase their outsourcing strategies in the coming years.
5. Sustainability-Focused Real Estate Upgrades: With increasing regulatory pressures and environmental concerns, there is a strong push towards upgrading legacy real estate assets. 57% of CRE leaders are prioritizing sustainability practices in their real estate decisions.

India’s Green Certification Growth

India has seen a significant rise in green-certified office space. As of Q2 2024, approximately 490 million square feet of India’s Grade A office stock is green-certified, marking a 68% increase since 2019. This growth reflects the heightened demand for sustainable workspaces. Vimal Nadar, Senior Director and Head of Research at Colliers India, noted, “High-performing green assets have gained considerable importance among stakeholders. Sustainable practices, including green building certifications and environmental assessments, will remain critical for developers and investors.”

The report indicates that as the market continues to evolve, innovation, flexibility, and sustainability will be key drivers in shaping the future of commercial real estate in Asia Pacific and India.

Also Read: 58% of companies to expand flexible office space portfolio by 2026

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