The rise of Global Capability Centres (GCCs) and artificial intelligence-driven data centres is creating a new wave of demand for commercial real estate, according to Prestige Estates Projects.
During its Q4 FY26 earnings call, the Bengaluru-headquartered real estate developer highlighted strong leasing momentum across its commercial portfolio, driven by GCCs, technology firms and domestic corporates. The company reported healthy occupancy levels of 92% in its annuity portfolio and said demand for office space remains robust despite concerns over a potential slowdown in the technology sector.
Addressing investor concerns about the impact of artificial intelligence on employment and office demand, Prestige management struck an optimistic note. The company believes AI is not reducing the need for commercial real estate but is instead creating new opportunities.
“There is demand. GCCs are picking up more space. AI also needs space, AI data centres need space. The type of job creation will be different, but one business will lead to another,” said Executive Director Zayd Noaman during the call.
The comments come at a time when investors are debating whether AI-led automation could reduce office demand in major technology hubs such as Bengaluru and Hyderabad. Prestige, however, sees the emergence of AI infrastructure and expanding GCC operations as powerful offsetting forces.
The company said it continues to witness strong demand across its office portfolio. In Bengaluru, rentals remain on an upward trajectory, with premium central business district assets commanding rents of over Rs 200 per sq ft per month. Prestige also indicated that discussions are underway with large occupiers for significant pre-leasing opportunities in upcoming projects.
India’s GCC sector has become one of the biggest demand drivers for commercial real estate over the past few years. Multinational corporations are increasingly setting up technology, engineering, finance and research hubs across major cities. At the same time, AI-driven computing requirements are accelerating investments in data centres, creating fresh demand for land, power infrastructure and commercial development.
For developers such as Prestige Estates, the convergence of GCC expansion and AI infrastructure could provide a long runway of growth for office leasing and rental income in the years ahead.
