Industry executives say this trend is becoming increasingly visible across major office markets, particularly Bengaluru, Hyderabad, and Pune, where both global tech firms and AI-first startups are expanding their teams and taking up larger office spaces.
Karan Chopra, chairperson and co-chief executive officer of Table Space, said the company has signed multiple AI tech firms over the past three months, with lease sizes ranging between 50,000 and 100,000 square feet, largely concentrated in Bengaluru and Hyderabad.
Table Space houses around 40 AI companies across its facilities and is integrating AI- and Internet of Things-enabled infrastructure, such as smart workstations and intelligent building systems, to support these firms. “One prominent AI brand more than doubled its presence with us over a period of three years,” Chopra said.
Umesh Uttamchandani, MD of DevX, said: “Our existing clients are becoming much more productive with the large-scale adoption of AI. We are seeing that improved productivity is making organisations more bullish and optimistic about growth. This is leading them to take up more office space. Many IT companies are looking to lease extra space from us.”
Peush Jain, MD, commercial leasing and advisory at Anarock Group, highlighted that many large tech and global capability centre (GCC) expansions — such as those by L&T Technology Services, LTM, and global Cloud and search majors — involve AI and engineering hubs in Bengaluru, Pune, Hyderabad, and Chennai. Flexible (flex) operators have also signed AI platforms such as Asper.ai and Eightfold AI for mid-sized office blocks. WeWork India, IndiQube, Table Space, Incuspaze and other flex operators are reporting numerous agreements — usually for 50 to 700 seats — with AI-first startups in Bengaluru, Pune, and Hyderabad, Jain added.
Real estate consultants say the broader office market is already seeing the effects of rising AI investments. Arvind Nandan, MD of research and consulting at Savills India, said much of the demand is being driven not only by pure-play AI startups but also by tech firms and GCCs building AI and advanced analytics. India’s office market recorded gross absorption of 75.2 million square feet (msf) in 2025, with tech occupiers accounting for about 34 per cent of leasing activity. GCCs absorbed around 28 msf, representing nearly 38 per cent of total leasing, he said. Many GCCs are shifting their focus towards specialised roles in AI, analytics, Cloud computing, and product engineering.
Companies such as Tesco, SAP, Walmart, and Airbus are increasingly using their India centres to develop AI-driven solutions and support global innovation, a trend expected to continue as AI adoption accelerates worldwide.
Flex workspace operators say they are witnessing the shift firsthand. Neetish Sarda, founder and MD of Smartworks, said global enterprises are expanding their India teams in areas such as machine learning, data science, and advanced engineering. Much of this growth is happening within GCCs, which are increasingly becoming the innovation engines of multinational companies. Amit Ramani, chairperson and MD of Awfis Space Solutions, said AI-driven firms have distinct workspace requirements, including collaborative innovation zones and tech-enabled infrastructure designed for engineering and data science teams.
“Many of the companies we signed earlier started with around 100 seats and are now occupying 800 to 1,000 seats,” Chopra said, adding that new-age AI firms prefer ready-to-use offices in Grade A locations rather than building and managing their own workspaces.
“These functions require secure, scalable, and collaboration-driven workplace environments, which is driving demand for enterprise-grade managed office campuses,” Sarda said, adding that the rapid pace of change in AI is also pushing companies towards flex-office models that allow them to expand teams quickly.
 "Artificial Intelligence, AI Technology, IT Sector")