India Inc. Rethinks Office Deals Amid War and AI Uncertainty

Executives report that while demand for high-quality office spaces in prime locations remains resilient, larger corporate transactions are being put on hold. This measured approach by occupiers and investors is extending decision-making timelines. Despite these challenges, the flexible workspace sector is expanding significantly to meet demand, and construction activity and labor availability are stable.

However, rising input costs for materials like steel and cement, along with increased expenses for MEP, HVAC, and technology integration, are contributing to upward pressure on office fit-out and construction costs. Experts note that while these factors pose short-term risks, India's long-term advantages, including its skilled talent pool and cost competitiveness, are expected to help the sector navigate these challenges.