India leads Asia Pacific (APAC) office demand with 70% share in H1 2025 leasing: Report

India emerged as the dominant force in Asia Pacific’s (APAC) office leasing market in H1 2025, accounting for 70% of total leasing activity, according to Colliers. Leasing in the region’s 11 key markets reached 48.4 million square feet (msf), up 9.6% YoY, with India alone contributing 33.7 msf across its top seven cities. Domestic occupiers led the momentum, driving 46% of India’s leasing demand. The report highlighted that robust Grade A office demand in India was supported by sustained global capability centre (GCC) activity, occupier expansion, and a more diversified base of tenants, reinforcing a positive outlook for the sector.
India also led new office supply in APAC, delivering 24.76 msf, representing 48% of total additions in the region. APAC’s overall new supply grew 45.4% YoY to 51.7 msf, outpacing demand in several markets. India, Mainland China, and Japan together contributed about 90% of APAC’s office demand in H1 2025, while India, China, and Singapore accounted for 80% of new supply. Analysts noted that supportive macroeconomic conditions, including lower inflation, easing interest rates, and positive Gross domestic product (GDP) growth, underpinned the expansion. Colliers expects sustained demand in H2 2025, though increased supply could add pressure on vacancy levels, with rental growth anticipated only in select high-performing micro-markets.

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