India continued to lead APAC office market activity, driving over 70% of the total demand during Q3 2024

India continues to dominate the Asia Pacific office markets, accounting for over 70% of the total office demand in Q3 2024, surpassing China’s 17%. The Indian market saw 17.3 million square feet of office leasing in the region. Bengaluru and Hyderabad drove the demand for Grade A office space, collectively accounting for more than half of the total. Average rental rates in major Indian office markets grew by up to 10% annually in Q3 2024, signalling a continued expansion phase. As demand for premium office spaces remains strong, rents are expected to rise further, according to Colliers India. The Asia Pacific office market is projected to grow in 2025, with demand across key markets rising by 10.7% YoY in Q3 2024 to 23.7 million square feet, indicating a positive outlook for the region.

India, New Zealand, and Singapore saw office leasing growth exceeding 30% YoY, supported by occupiers’ preference for high-quality, sustainable workspaces. The Indian market will absorb five - six million square metres (54-64 million square feet) of Grade A office space in 2024. The new office supply in India for Q3 2024 is aligned with demand, with Bengaluru and Hyderabad contributing 64% of the new completions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.