India’s growing adoption of artificial intelligence could generate up to 79 million square feet of additional office space demand between 2025 to 2030, according to a report by Redseer Strategy Consultants, released on Wednesday.

The report, titled “AI and the Future of Flexible Workspaces,” finds that knowledge-economy office stock is expected to expand significantly in this period, with flexible workspaces emerging as a default workspace model.

The flex workspace market expanded from 33 million sq ft in 2020 to over 103 million sq ft in 2025.

Given the specialised AI-led hiring that GCCs, start-ups, and large enterprises are undertaking, demand for flexible and managed office spaces that support collaboration, scalability, and specialised teams, is on the rise.

“With nearly 82 per cent of enterprises surveyed planning to increase flex workspace adoption, while AI-led hiring alone is expected to contribute approximately 31 per cent of flex seat leasing demand by 2030, flex is no longer a transitional workspace strategy; it is increasingly becoming enterprise infrastructure for the AI era,” Chhavi Singh, Associate Partner at Redseer Strategy Consultants, said.

“93% of enterprises surveyed reported higher collaboration intensity over the past year,” the report stated. Additionally, 82% of enterprises planned to increase their use of flexible workspaces over the next two years, while AI-led hiring is expected to contribute approximately 31% of flex seat leasing demand by CY2030, it added.

The report also highlighted the rapid growth of India’s flexible workspace market, which expanded from 33 million sq ft in 2020 to over 103 million sq ft in 2025, driven by rising collaboration needs and evolving workforce planning.

Published on May 20, 2026