Brookfield Executive Downplays AI-Driven Market Volatility

India's Office Real Estate Market Remains Resilient Despite AI Headwinds

At the Moneycontrol Global Wealth Summit, Ashank Kothari, Managing Director for Real Estate at Brookfield, highlighted the sector's continued growth. Leasing activity in India's commercial real estate market reached a record 85 million square feet in 2025, driven by long-term structural factors.

Rapid Urbanization and India's favourable demographic profile are key drivers of sustained demand. The country is expected to see a significant migration of 350 million people to urban areas over the next 25 years, increasing demand for housing, commercial spaces, and urban infrastructure.

India's Office Real Estate Market Dynamics

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

• Total office stock: 1 billion square feet
• Obsolete office stock: 70% of total supply lacks ESG compliance, adequate power infrastructure, and modern technical specifications.
• Institutional Grade A office stock: 20% of total supply, owned by institutional investors and meeting global tenant standards.
• Demand for high-quality spaces is likely to remain robust as more people enter the workforce and move to cities.

Investment Opportunities in Office Real Estate and Hospitality

• Demand for institutional Grade A offices is expected to remain strong.
• Hospitality is another segment with strong investment potential, driven by favourable demand and supply dynamics.