The rise of artificial intelligence is bringing a new cohort of mid-sized global companies and smaller Global Capability Centres into India’s office market, broadening demand beyond traditional Fortune 500 occupiers, according to Embassy REIT CEO Amit Shetty. The country’s largest listed office landlord also posted a 17 per cent year-on-year jump in first-quarter revenue, underscoring the sector’s momentum.
Financial results and leasing momentum
Embassy REIT reported a 17 per cent year-on-year increase in revenue to ₹1,241 crore and a similar rise in net operating income to ₹1,020 crore for the first quarter of FY27, according to the company. The REIT said 86 per cent of its leasing during the quarter came from new entrants, while AI-related organisations accounted for 21 per cent of leasing — a sign that AI is emerging as a demand enabler for office space rather than simply a technology trend.
| Metric | Q1 FY27 | Growth (YoY) |
|---|---|---|
| Revenue | ₹1,241 crore | +17% |
| Net operating income | ₹1,020 crore | +17% |
| Leasing from new entrants | 86% | — |
| AI-related leasing share | 21% | — |
A broader base of occupiers
The demand shift extends beyond the Fortune 500. According to Shetty, “The new set of guys who are actually coming into the country” includes G2000 or Fortune 2000 companies, mid-market firms and smaller companies looking to use India’s talent pool to innovate, transform products and processes and deploy AI.
The trend is visible in the wider Global Capability Centre ecosystem. Around 110 new GCCs were set up in India in the first half of calendar 2026, Shetty added, helping build an ecosystem around India’s AI talent base.
Occupier diversity is also widening. While technology companies have traditionally driven GCC-led office demand, Embassy REIT is now seeing companies from semiconductors, robotics, telecom, healthcare and pharmaceuticals taking space in India.
“Size really doesn’t matter anymore.”
Talent pool lowers entry barriers
India’s large and increasingly fungible technology talent pool is lowering the entry barrier for smaller overseas companies, Shetty said. Around 250,000 people are currently part of the country’s AI and machine-learning workforce, while existing IT professionals are also upskilling to work with newer technologies.
These dynamics are supporting the broader office market. Around 45.5 million sq ft of gross leasing was recorded in the first half of calendar 2026, while vacancy declined, pushing rentals higher, according to The Hindu BusinessLine.
Development pipeline and key markets
Embassy REIT is responding with a 6.2-million-sq-ft development pipeline involving a capital outlay of ₹3,500 crore. About 60 per cent of the space planned for delivery over the next two years is already leased, reflecting strong pre-commitment demand.
The REIT is also showing confidence to develop ahead of demand in key markets:
- In Chennai, it is developing 2 million sq ft at Embassy Splendid Tech Zone.
- In Bengaluru, it has launched a 1.4-million-sq-ft redevelopment at Manyata.
The article, authored by Aishwarya Kumar, was published by The Hindu BusinessLine on August 9, 2026.
Sources:
