Increased Office Days and AI Investment Highlight India’s Strong Corporate Real Estate Outlook

MUMBAI, NOVEMBER 28, 2024: As organizations across India reaffirm their commitment to office-based work, a new report reveals that 90% of Indian companies now require employees to be present in the office for at least three days a week—surpassing the global average of 85%. This shift towards office-centric workspaces is not just a current trend but is expected to grow, with 54% of Indian organizations (compared to 43% globally) anticipating an increase in office days by 2030. These findings were revealed in the Future of Work Survey 2024 – India Insights, a comprehensive study conducted by JLL, surveying over 2,300 corporate real estate (CRE) and business decision-makers globally.

Office Advocacy Surpasses Global Trends

India stands as a leader in advocating for office spaces, even as the global landscape shifts towards hybrid work models. The survey shows a marked preference for in-office work, a trend that will likely expand. CRE professionals are closely aligned with this shift, recognizing the evolving role of office spaces in the workplace. By 2030, organizations predict longer lease tenures and more expansive office footprints, with two-thirds of firms expecting these changes in the next five years.

Artificial Intelligence: A Game Changer for the Indian Workforce

The rapid integration of Artificial Intelligence (AI) is another defining feature of India’s evolving corporate landscape. An overwhelming 94% of businesses forecast that AI will significantly change workforce operations, with 95% planning to ramp up AI investments in the coming five years. This technological shift is not only transforming how work is done but is also influencing the way offices are designed and managed. As a result, the corporate real estate sector will play a pivotal role in supporting organizations through this transition, balancing traditional office spaces with cutting-edge technologies that enhance productivity.

Sustainability Takes Center Stage in Corporate Planning

Sustainability is becoming an increasingly prominent priority in Indian corporate strategies. The survey shows that 77% of organizations expect to boost spending on sustainability programs in the coming years, with 70% having well-defined sustainability initiatives in place. This focus extends into corporate real estate, where half of the companies are willing to pay a premium for office buildings with superior green certifications by 2030. Sustainability not only influences workplace design but also aligns with the broader goals of reducing environmental footprints while enhancing overall business operations.

Challenges in Long-Term Planning and Integration

Despite the optimism surrounding office spaces, AI, and sustainability, the survey reveals significant challenges that corporate real estate leaders face. Forty-four percent of respondents highlighted the difficulty of planning for the long term in an environment of constant change. Additionally, 46% noted the limited integration between business units and CRE functions as a key barrier to maximizing the value of office spaces.

The Role of Corporate Real Estate in Shaping the Future of Work

The role of corporate real estate (CRE) is evolving rapidly to meet the challenges of an ever-changing workplace. CRE leaders in India anticipate a surge in spending on technology, with 86% planning to increase investments in CRE tech by 2030, significantly higher than the global average of 68%. This focus on technology will help improve workplace experiences, optimize efficiency, and support long-term business growth.

A Flexible, Sustainable Future for Indian Workplaces

As India continues to embrace office work, AI advancements, and sustainability, corporate real estate will be at the forefront of shaping the workplace of tomorrow. A strategic, flexible approach is essential to balancing the need for in-person collaboration with technological advancements and sustainability goals. As organizations prepare for the future, aligning CRE functions with broader corporate objectives will be key to maintaining a competitive edge in the rapidly evolving business landscape.