New Delhi, Aug 21 India accounted for around 70 per cent of the commercial leasing demand in the Asia Pacific (APAC) region and 48 per cent of new supply in the first half of 2025 (H1 2025), making it the leading office market in this geography, a report said on Thursday
Mainland China, India, and Singapore accounted for about 80 per cent of the new supply during the period, according to commercial real estate firm Colliers’ report.
The report said that robust demand for Grade A office space in India is driven by continued occupier expansion, sustained Global Capability Centre (GCC) activity and a diversifying demand base.
Domestic demand, in particular, is holding up well, accounting for 46 per cent of the total leasing of 3.13 million square metres across the top 7 cities of the country.
Commercial leasing activity in 11 key markets of the APAC region totalled 4.5 million square metres in the first half of the year, marking a 9.6 per cent YoY increase.
Eleven key markets monitored included Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, Philippines, Singapore, South Korea, and Taiwan.
In H1 2025, Singapore reported a twelvefold increase in leasing volumes, while the Philippines and Japan posted year-on-year increases of 56 per cent and 55 per cent, respectively. New supply increased by 45.4 per cent year-on-year to 4.8 million square metres (51.7 million square feet), surpassing demand in most markets.
Meanwhile, India, Mainland China and Japan continued to anchor regional activity, collectively accounting for more than 90 per cent of total office demand.
Australia, New Zealand, and Japan reported annual growth rates over 80 per cent. In H1 2025, 8 of 11 APAC markets reported an increase in new supply.
"The APAC office market continues to display remarkable resilience, with both demand and supply strengthening in H1 2025 despite ongoing volatilities. Leasing activity in 11 APAC markets grew 9.6 per cent to 4.5 million square metres in H1 2025. New supply rose by 45.4 per cent to 4.8 million square metres, driven by lower inflation, easing interest rates, and positive GDP growth in key markets," said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
India and the APAC region are positioned for strong performance in the second half of 2025, supported by growth policies and sustained occupier momentum, he added.
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