Global Wealth Summit: If AI were a headwind, we would have seen it by now, says Brookfield’s Ashank Kothari

Ashank Kothari, MD - Real Estate, Brookfield

• AI has not reduced demand for office real estate in India
• Record 85 million sq ft leased in 2025, sector remains resilient
• High demand for scarce Grade A office spaces persists

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Ashank Kothari, Managing Director for Real Estate at Brookfield, speaking at the Moneycontrol Global Wealth Summit,  said that the rapid rise of AI has not dampened demand for office real estate in India, pointing to record leasing activity as evidence that structural drivers remain strong.

“If we were to see AI headwinds, we would have seen them by now,” Kothari said, noting that AI took over the world by storm in 2023.

Despite concerns that automation and remote work could weaken office demand, India’s commercial real estate market has continued to expand. According to Kothari, leasing activity reached a record 85 million square feet in 2025, underscoring the resilience of the sector.

He attributed the sustained demand to long-term structural factors, particularly rapid urbanisation and India’s favourable demographic profile.

“India remains a very young country demographically. Over the next 25 years, nearly 350 million people are expected to move into urban areas,” he said, adding that this large-scale migration will significantly increase demand for housing, commercial spaces and urban infrastructure.

Kothari also highlighted a growing divide between different types of office stock. While India has roughly one billion square feet of office real estate, a large portion of that supply is becoming outdated and does not meet modern requirements.

Many older buildings lack ESG compliance, adequate power infrastructure and the technical specifications required by global occupiers, he said, adding that nearly 70 percent of the country’s office stock could be considered obsolete.

In contrast, institutional Grade A office spaces remain scarce. Only about 20 percent of India’s office real estate is owned by institutional investors and meets the standards expected by global tenants.

“Institutional Grade A offices are a scarcity product in India,” Kothari said, adding that demand for high-quality spaces is likely to remain robust as more people enter the workforce and move to cities.

He also pointed to hospitality as another segment with strong investment potential, driven by favourable demand and supply dynamics.