AI increasingly driving new era of corporate real estate

New Delhi: Corporate real estate (CRE) leaders are increasingly pursuing cost optimisation and long-term transformation in parallel which is a shift from the traditional approach of sequencing efficiency measures before strategic investments, according to a report.

A report by Knight Frank — based on a global survey of senior CRE executives — found that 70.8 per cent of respondents believe organisations can achieve immediate cost savings while continuing to invest in long-term transformation initiatives. More than 53 per cent also expect CRE teams to play a broader strategic role in areas such as talent management, risk mitigation and enterprise-wide business transformation, it added.

In addition, technology is emerging as a key enabler of this shift, with 50.8 per cent of organisations willing to integrate artificial intelligence into workplace operations to improve productivity. The report also noted that companies are focusing on targeted AI deployment within core workflows rather than large-scale workplace redesign.

Globally, occupiers are moving away from expansion-led real estate strategies towards optimising existing portfolios and investing in high-quality, sustainable workplaces that foster collaboration, learning and innovation. However, India continues to stand out as a growth market, with office leasing across the country’s major markets touching 86.4 million sq ft in 2025, an increase of 20 per cent year-on-year and 43 per cent higher than the pre-pandemic peak recorded in 2019.

“India’s strong leasing performance reflects its growing strategic relevance in global corporate real estate strategies. Corporate real estate leaders today are expected to deliver cost efficiency and transformation in parallel, and the findings indicate that these are no longer competing priorities but aligned drivers shaping workplace decisions,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.