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Redseer Strategy Consultants has projected that India’s knowledge-economy office market could witness nearly 79 million sq ft of incremental office demand between CY2025 and CY2030 as artificial intelligence adoption reshapes enterprise workplace strategies. According to the firm’s report titled AI and the Future of Flexible Workspaces, AI-led hiring across global capability centres, large enterprises and AI-native startups is expected to accelerate demand for managed and flexible workspaces focused on collaboration, agility and specialised infrastructure. The study estimates that India’s flexible workspace stock has already expanded from nearly 33 million sq ft in CY2020 to over 103 million sq ft in CY2025, while approximately 82% of surveyed enterprises plan to increase flex workspace adoption over the next two years.
India’s office real estate market could witness a substantial increase in demand over the next five years as artificial intelligence adoption, GCC expansion and evolving workplace strategies reshape how enterprises consume commercial space, according to a report released by Redseer Strategy Consultants. Advertisement
In its latest study titled AI and the Future of Flexible Workspaces, the consultancy stated that India’s knowledge-economy office stock could see an incremental addition of nearly 79 million sq ft between CY2025 and CY2030 above the pre-AI demand trajectory.
The report indicates that a significant share of this additional demand is expected to shift towards managed and flexible workspace formats as enterprises increasingly prioritise agility, collaboration-led office environments and shorter business planning cycles.
According to Redseer, AI adoption is beginning to materially alter workplace strategies across global capability centres, AI-focused startups and large enterprises undertaking technology-led transformation initiatives.
The report noted that enterprises are increasingly seeking high-quality office environments capable of supporting specialised teams, collaborative work formats and evolving workforce structures linked to AI deployment.
Chhavi Singh, Associate Partner at Redseer Strategy Consultants, stated that enterprises are gradually transitioning towards “core plus flex” workplace models where organisations maintain core office infrastructure while using flexible workspace solutions to accommodate dynamic workforce requirements.
She added that AI-led teams are becoming more specialised and collaboration-intensive, driving greater preference for flexible workspace formats without compromising on infrastructure quality or employee experience.
According to the report, nearly 82% of surveyed enterprises indicated plans to increase flexible workspace adoption over the next two years.
The study further estimates that AI-led hiring alone could contribute approximately 31% of total flexible seat leasing demand in India by CY2030.
India’s flexible workspace market has already witnessed substantial expansion in recent years. According to the report, flexible office stock increased from nearly 33 million sq ft in CY2020 to more than 103 million sq ft by CY2025.
Industry stakeholders indicate that the growth reflects broader changes in enterprise real estate strategies as companies seek greater operational flexibility amid changing workforce patterns and technology adoption cycles.
The report also highlighted India’s growing position within the global AI ecosystem. Global AI investments have reportedly reached approximately USD 582 billion, while India continues to strengthen its role as a major AI talent and execution hub.
According to Redseer, AI hiring in India has increased nearly six-fold since CY2019, with AI-related job postings crossing 290,000 during CY2025.
The report further stated that India currently ranks second globally in AI talent concentration growth, with rising demand across machine learning, generative AI and ML Ops-related functions.
Within the GCC segment, the report projects that India’s AI workforce could increase from nearly 181,000 employees to around 730,000 by CY2030.
The study also highlighted that AI adoption is influencing workplace design and office utilisation patterns. Approximately 93% of surveyed enterprises reported higher collaboration intensity over the past year, increasing demand for offices equipped with stronger digital connectivity, advanced video infrastructure and flexible collaboration zones.
Industry observers note that AI-led business models and hybrid workforce structures are increasingly shortening workforce planning cycles, prompting enterprises to seek office formats capable of scaling more dynamically.
Real estate consultants indicate that this trend is likely to further strengthen demand for premium Grade A managed office environments across major office markets including Bengaluru, Hyderabad, Pune, Chennai, Gurugram and Mumbai.
According to industry stakeholders, the growing convergence of AI adoption, GCC expansion and flexible workspace demand is expected to become a major structural driver for India’s commercial real estate sector over the remainder of the decade.
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