India's office-using workforce is projected to expand from 38 million in 2025 to 48 million by 2030, driven by sector growth and evolving AI adoption, according to a Cushman & Wakefield study that highlights increasing demand for flexible and high-quality office spaces.
- Office workforce to rise by 9 million between 2025 and 2030
- Global Capability Centres shifting towards R&D and analytics
- Vacancy rates expected to peak at 16.2% in 2029 before easing
What happened
A report by Cushman & Wakefield reveals that India's office-using workforce is set to increase substantially from roughly 38 million in 2025 to 48 million by 2030. This growth contrasts with widespread assumptions that AI automation might reduce the need for physical office space. Instead, the report highlights that AI will reshape how space is used rather than shrink demand.
The growth is supported by the continued expansion of office-based services, especially through Global Capability Centres (GCCs), which are transitioning their operations toward research and development, product engineering, and analytics. These high-value activities demand better-quality, well-located, and more adaptable office environments to accommodate evolving business needs.
Why it matters
This trend signals that AI adoption in India will not simply replace human roles but cause a shift in the skills and workplace requirements, leading to sustained or increased demand for office real estate. Occupiers are expected to prioritize workplace flexibility and quality, requiring developers to create adaptable office spaces aligned with these new preferences.
However, the report also anticipates a rise in vacancy rates from 14.3% in 2025 to a peak of 16.2% in 2029 due to ongoing new office supply. This temporary imbalance suggests stakeholders need to carefully calibrate development pipelines with leasing commitments to avoid extended oversupply, while investors are advised to focus on prime, adaptable office assets amidst these changes.
What to watch next
Going forward, it will be important to track how the balance between office supply and demand evolves as new projects come online and as businesses integrate AI more deeply into workflows. The pace at which productivity gains from AI materialize, particularly within IT services and GCCs, will influence long-term office space needs and leasing trends.
Another key area to watch is how developers and investors respond to shifting occupier preferences, including an emphasis on flexible layouts and premium locations. Their ability to adapt product offerings and investment strategies could determine the sustainability of India's commercial real estate growth in the face of technological disruption.