India Amongst Front-Runners to Drive AI Augmentation, Demographic Shifts & Energy Security in APAC Region: Colliers India
Rapid investments in Artificial Intelligence (AI) and growing pressure on energy systems are reshaping the Asia Pacific (APAC) region’s commercial real estate, workforce and business strategies. With the APAC region expected to account for around 60% of global economic growth in the coming decades, the region is set to play an increasingly important role in how companies plan for the future.
Within APAC, India stands out as a key growth engine, with megatrends like AI-enabled workforces, seismic demographic shifts, and energy security making significant strides across the commercial real estate landscape.
1. Technology augmentation through AI-enabled workforces:
The growing integration of automation, analytics and AI in business functions is transforming how organizations operate, make decisions and plan their real estate needs. Within this landscape, India is fast emerging as an AI hub, underpinned by a rapidly expanding digital ecosystem and a deep talent base. In addition to the ongoing digitalization initiatives, heightened AI adoption across workspaces, growing demand for large language models (LLMs) and robust government support, are likely to push India’s AI market size from over USD 9 billion currently to more than USD 500 billion in the coming decades. Moreover, as companies continue to expand capabilities across AI & machine learning, cloud computation and advanced digital technologies, 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 & relatively younger talent pool.2. Harnessing ongoing seismic demographic shifts:
India is well placed to gain benefits emerging from demographic dividends arising out of its higher proportion of global workforce and relatively young population having a median age of ~29 years. With over 1.4 billion people, India currently accounts for ~18% of the world’s population. This demographic advantage positions India as a key global talent hub, especially as mature markets in developed economies face shrinking talent pools. Notably, major Indian cities such as Bengaluru, Hyderabad, Delhi NCR, Chennai, Mumbai and Pune rank among the top 10 tech talent acquisition markets across the APAC region. As more young professionals enter the workforce, occupier preferences will continue to evolve, driving the demand for next-gen, technology-adept workspaces.India adds 2-3 million STEM graduates annually, making up about one-third of the global skilled talent availability, simultaneously benefitting from a relatively young workforce. This demographic advantage will continue to support sustained expansion by both domestic & global companies, driving office space demand in the country. Additionally, strong economic growth prospects, rental arbitrage and continued adoption of distributed workplace strategies are likely to fuel long-term commercial real estate demand in India. More importantly, Global Capability Center (GCC) space uptake, which drives the majority of the office leasing, will continue to strengthen with the deepening of capabilities in R&D, engineering, AI, machine learning and cloud computing,” said Arpit Mehrotra, Managing Director, Office Services, India, Colliers
3. Tackling energy scarcity and security:
Energy availability and security is becoming a key factor in real estate location and investment decisions, particularly in rapidly urbanizing markets. In recent years, India is making significant efforts to address energy scarcity & strengthen energy security with an increasing focus on green-certified buildings, renewable energy adoption, retrofitting of older buildings and broader Environmental, Social, and Governance (ESG) integration. Notably, India’s sustainability adoption is highest in commercial real estate, with green-certified buildings accounting for nearly two-thirds of the current Grade A office stock. Developers, investors and occupiers are proactively enhancing sustainable features across the entire asset lifecycle. In India, over 420 million sq ft of Grade A office buildings are currently over 10 years old and hold retrofitting potential, presenting a significant investment opportunity of over USD 5 billion. This will not only bring a transformational change in asset quality and energy efficiency but also make properties more sustainable in the long-term.4. Mitigating climate risk:
More frequent extreme weather events and evolving regulatory expectations are driving new approaches to resilience and challenging the long-term viability of certain locations, with many APAC markets facing heightened exposure to climate-related disruptions. India is highly exposed to climate risks, from heatwaves to urban flooding, and this is likely to drive real estate occupiers to prioritize green buildings, resilient & sustainability-led workplaces, climate-tech adoption and relocation to lower-risk regions.5. Shifting of global order and emergence of newer business hubs:
Changes in trade relationships, supply chains and economic growth patterns are prompting businesses to reassess traditional models and expand into new markets, with APAC expected to account for a growing share of global economic activity and play a central role in trade, investment and supply chain diversification in the coming decades.“Asia Pacific’s dynamism shows there’s no longer a global monopoly on innovation or competition. The region will become an increasingly important factor in location strategies globally, whether as a future growth center, vital supply chain link or source of skilled talent. Moreover, the prevailing dynamism will push organizations to act now to strengthen resilience and prepare for the future. Organizations and occupiers which adapt proactively will be best equipped to thrive,” said Mike Davis, Managing Director, Asia Pacific, Occupier Services, Colliers.
These five megatrends highlight the need for businesses to rethink how they plan for uncertainty and build resilience in their strategies. The combination of technological changes, demographic shifts and infrastructure pressures are prompting occupiers to rethink everything from talent strategies and workplace design to supply chains and long-term risk planning. Organizations that take a proactive approach to these changes will be better positioned to navigate disruption and unlock long-term value. In fact, by focusing on flexibility, strengthening workforce capabilities and embedding resilience into decision-making, businesses can position themselves for sustained success in an increasingly complex environment.
Published on:
26 May 2026
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