Experts Warn of Potential Job Loss Impacts on Real Estate Market Amid Rise of Artificial Intelligence

India Real Estate Market: Cautious Optimism Amid Global Uncertainties

Key Takeaways

• Knight Frank India's Gulam Zia cautions investors to remain cautious due to potential job losses linked to AI adoption and events in the Middle East.
• The commercial real estate sector experienced a strong Q1 with better leasing figures year-on-year, but may feel the impact of recent events in subsequent quarters.
• The sector has seen 20% growth in 2025, with 85 million square feet of outstanding leasing, but experts predict a potential slowdown.

Market Trends and Outlook

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• AI adoption may have a positive impact on the real estate market, with Grade-A offices remaining a scarce product and potential for 100 million square feet of annual leasing.
• Hospitality is expected to be a major driver of real estate investments over the next few years due to a supply and demand gap, with Indian tourism at an inflexion point.
• Tier-II cities are gaining traction as investment destinations, with 40% price appreciation in locations such as Ayodhya, Vrindavan, Amritsar, and Nashik.

Expert Insights

• Gulam Zia, Knight Frank India: Investors should remain cautious due to potential job losses linked to AI adoption and events in the Middle East.
• Ashank Kothari, Brookfield: AI has taken the world by storm, and India is well-positioned to benefit from its impact.
• Abhinandan Lodha, The House of Abhinandan Lodha: Tier-II cities carry major investment potential, with significant price appreciation and infrastructure development.