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Colliers’ latest global report highlights long-term megatrends reshaping corporate real estate across Asia Pacific. It notes that rapid digitalisation and strong AI adoption could expand India’s artificial intelligence market from over USD 9 billion to more than USD 500 billion in the coming decades. India’s young workforce, accounting for nearly one-third of global skilled talent, is strengthening its position as a major tech and GCC hub. The report also underlines India’s leadership in green-certified office spaces, rising climate risks, and growing focus on energy security and sustainable real estate development.
Colliers’ latest global report, titled “Building Resilience: 5 Megatrends Redefining Corporate Real Estate”, outlines long-term structural shifts that are reshaping office market strategies across global markets. It explains how five interconnected megatrends—AI-enabled workforces, demographic transitions, energy scarcity and security, climate risks, and changes in the global order are influencing corporate real estate decisions linked to location planning, investment flows and talent strategies. Advertisement
The report highlights that increasing investment in artificial intelligence and rising pressure on energy systems are reshaping the Asia Pacific region’s commercial real estate landscape, workforce structure and broader business strategies. The region is expected to account for around 60% of global economic growth over the coming decades, strengthening its role in corporate planning and investment decisions.
Within Asia Pacific, India is emerging as a strong growth driver, supported by rapid developments across AI-enabled workforces, demographic advantages and energy security initiatives that are influencing commercial real estate activity.
The increasing integration of automation, analytics and AI across business functions is transforming operational models, decision-making processes and real estate planning requirements. India is emerging as a significant AI hub, supported by its expanding digital ecosystem and strong talent base. Ongoing digitalisation efforts, rising adoption of AI tools across workplaces, increasing demand for large language models (LLMs) and government-backed initiatives are expected to drive India’s AI market from over USD 9 billion at present to more than USD 500 billion in the coming decades.
As companies expand capabilities in AI, machine learning, cloud computing and advanced digital technologies, India continues to attract global firms due to competitive rentals, lower cost of living and a large young workforce.
India is well positioned to benefit from demographic trends, supported by a young population with a median age of around 29 years. With a population of over 1.4 billion, the country accounts for nearly 18% of the global population. This demographic profile strengthens India’s position as a global talent hub, especially as developed economies face shrinking workforce pools.
Major cities including Bengaluru, Hyderabad, Delhi NCR, Chennai, Mumbai and Pune rank among the top tech talent acquisition markets in Asia Pacific. With millions of young professionals entering the workforce, demand for modern, technology-enabled office spaces is expected to grow steadily.
India produces around 2–3 million STEM graduates annually, accounting for nearly one-third of global skilled talent availability. This workforce advantage is supporting expansion by both domestic and global companies and driving sustained demand for office space. Growth in Global Capability Centres (GCCs), particularly in R&D, engineering, AI, machine learning and cloud computing, is further strengthening commercial real estate activity in the country.
Energy availability and security are becoming increasingly important factors in real estate investment and location decisions. In recent years, India has intensified efforts to address energy challenges through green-certified buildings, renewable energy adoption, retrofitting older structures and broader ESG integration.
Green-certified buildings currently account for nearly two-thirds of India’s Grade A office stock, reflecting strong sustainability adoption in commercial real estate. Developers, investors and occupiers are increasingly incorporating sustainable features across asset lifecycles.
India also has over 420 million sq ft of Grade A office space that is more than 10 years old, offering significant retrofitting potential. This represents an estimated investment opportunity of over USD 5 billion, which is expected to improve energy efficiency and upgrade overall asset quality.
Increasing extreme weather events and evolving regulations are shaping new resilience strategies in real estate. Several Asia Pacific markets are facing higher exposure to climate-related risks, and India is among the most affected, with challenges such as heatwaves and urban flooding.
This is expected to push occupiers towards green buildings, climate-resilient workspaces, climate-tech adoption and relocation strategies towards lower-risk regions.
Changes in global trade patterns, supply chains and economic structures are encouraging businesses to diversify operations into new regions. Asia Pacific is expected to play a larger role in global economic activity, supply chain networks and investment flows in the coming decades.
Colliers notes that the region’s growing influence is reshaping location strategies globally, with organisations increasingly viewing Asia Pacific as a key growth centre, supply chain hub and talent source. This shift is expected to encourage companies to strengthen resilience and adapt their operating models proactively.
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