New Launch - India Real Estate Report 2026.
Fifty-eight percentage points. That's the gap between what Indian business leaders believe about AI and what they've actually done about it in their workplaces, and it's the single number that makes JLL's latest survey worth reading past the headline.
The gap between ambition and action
Indian companies lead global averages across all eight AI readiness indicators JLL tracks. But only 19% have started making changes to their actual workplaces, even as 77% of Indian business leaders expect AI to change their office requirements. The survey covered more than 2,200 CEOs, CFOs and real estate leaders across 21 countries in the first quarter of 2026, which gives this gap real statistical weight rather than a one-off anecdote.
Awareness clearly isn't the problem. Execution is.
Why this isn't a workforce fear story
Despite the automation anxiety that usually accompanies AI conversations, 58% of Indian leaders expect their workforce to grow over the next three to five years. Around 62% believe AI will make human roles more valuable rather than replace them, and 65% expect staff performance to increasingly be judged on work quality rather than hours logged.
That's a notably optimistic read compared to how this conversation usually plays out globally, and it changes the real estate implication considerably. Companies planning workforce growth still need physical space. AI readiness here isn't about shrinking office footprints; it's about reconfiguring what that space needs to do.
India is doing the groundwork, just slowly
India outperformed global averages in tracking AI trends, assessing its impact on real estate teams, training staff and scouting new locations. 56% of Indian companies are tracking AI trends, against 46% globally, and 48% are studying its implications specifically for real estate functions.
Ajit Kumar, Managing Director for Work Dynamics Accounts, West Asia, at JLL, put the distinction plainly: Indian companies have strong ambition and awareness, but capability is what separates businesses that have started implementation from those that only recognise the need.
The real blocker isn't budget anymore
Here's the finding that should genuinely surprise anyone tracking this space. Skills shortages, not cost, are now the biggest barrier. 46% of Indian companies cited shortages in AI, technology and data capabilities as their main obstacle, versus just 35% pointing to budget constraints. That's the first time in the survey's 15-year history that capability concerns have overtaken cost pressures, a meaningful shift in how Indian businesses are diagnosing their own transformation gap.
What this means for office real estate demand
The investment priorities line up with genuine, durable demand for a specific kind of office space. Technology and AI support led as the top investment priority for 50% of companies, followed by reliable technology infrastructure at 49%. And 73% of companies said they'd invest in AI-enabled buildings over basic maintenance, while 72% favour long-term locations over flexible leases.
That last figure matters for landlords and developers specifically. Companies planning for AI transformation aren't hedging with short-term flexible space; they're committing to long-term locations they can build AI infrastructure into properly. Combined with average office attendance running at 3.8 days a week and 62% of organisations requiring four or five days in-office, the picture is one of sustained physical office demand shaped around AI capability rather than AI-driven office reduction.
Energy expenses and AI automation costs, each cited by 49% of companies, are expected to drive rising office Enjoyed this update? Visit PropTech Pulse for more real estate news and market insights.
