New Delhi [India], May 26 (ANI): India is emerging as one of the leading growth drivers in the Asia Pacific region across artificial intelligence (AI), demographic advantage and energy security, according to a report released by Colliers.
The report, titled "Building Resilience: 5 Megatrends Redefining Corporate Real Estate", highlighted how long-term structural shifts including AI-enabled workforces, demographic changes, energy security concerns, climate risks and changing global trade dynamics are reshaping corporate real estate strategies globally.
According to the report, rapid investments in AI and increasing pressure on energy systems are significantly influencing commercial real estate, workforce planning and business operations across the Asia Pacific (APAC) region, which is expected to contribute nearly 60 per cent of global economic growth in the coming decades.
Within the APAC region, India has emerged as a major growth engine due to its expanding digital ecosystem, large talent base and increasing focus on sustainability and technology-driven infrastructure.
The report noted that India is fast becoming an AI hub, supported by rising adoption of automation, analytics and AI-driven business functions across industries. It stated that India's AI market, currently valued at over USD 9 billion, is projected to grow to more than USD 500 billion in the coming decades due to increasing demand for large language models, cloud computing and advanced digital technologies.
It added that India continues to remain an attractive destination for global firms because of competitive rentals, lower operating costs and availability of a relatively young and skilled workforce.
Highlighting India's demographic advantage, the report said the country accounts for nearly 18 per cent of the global population and has a median age of around 29 years, positioning it as a major global talent hub at a time when several developed economies are witnessing shrinking workforce availability.
Major Indian cities including Bengaluru, Hyderabad, Delhi, Chennai, Mumbai and Pune were identified among the top technology talent acquisition markets in the APAC region.
"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," said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
He added, "This demographic advantage will continue to support sustained expansion by both domestic and global companies, driving office space demand in the country."
The report also highlighted India's growing focus on energy security and sustainable commercial real estate. It noted that nearly two-thirds of the country's Grade A office stock is now green-certified, reflecting increasing adoption of ESG-linked infrastructure and renewable energy practices.
According to the report, over 420 million square feet of Grade A office space in India is more than 10 years old and presents retrofitting opportunities worth over USD 5 billion to improve energy efficiency and sustainability standards.
On climate-related risks, the report stated that increasing heatwaves, urban flooding and extreme weather events are likely to push occupiers towards resilient and sustainability-focused workplaces.
Commenting on the broader APAC outlook, Mike Davis, Managing Director, Asia Pacific, Occupier Services, Colliers, said, "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."
The report said businesses that proactively adapt to technological transformation, workforce shifts and sustainability pressures will be better positioned to navigate future disruptions and achieve long-term growth. (ANI)