India leads APAC office demand with 70% share in H1 2025 leasing: Report

Country accounts for 48% of new office supply in APAC and demand 'remains positive': Colliers

India accounted for a 70 per cent share of office space leasing in Asia Pacific (APAC) and the country’s demand “remains positive”, according to a report by Colliers. Domestic demand accounted for 46 per cent of office leasing in India.

 

Leasing activity in 11 key APAC markets reached 48.4 million square feet (msf) in the first half of 2025 (H1 2025), up 9.6 per cent from the previous year. Of this, India leased 33.7 msf of space in its top seven cities.

 

India also accounted for 48 per cent of the new office supply in APAC. New supply in APAC grew 45.4 per cent from the previous year to 51.7 msf, outpacing demand in most markets. India saw a supply of approximately 24.76 msf.

 

“The robust demand for grade A office space in India is driven by a combination of factors, including continued occupier expansion, sustained GCC [global capability centres] activity, and a diversifying demand base,” said Vimal Nadar, national director and head of research, Colliers India. 

 

“Backed by these fundamental demand drivers, a strong supply pipeline, and marked improvement in macroeconomic indicators, the office market outlook for India remains positive,” he said.

 

Overall, India, Mainland China and Japan drove about 90 per cent of APAC’s office demand in H1 2025. Markets monitored by Colliers included Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, and Taiwan.

 

Further, China, India, and Singapore together accounted for approximately 80 per cent of the new supply during the period.

 

The growth across APAC was supported by relatively lower inflation levels, easing interest rates, and positive GDP growth across key markets.

 

"The APAC office market continues to display remarkable resilience, with both demand and supply strengthening in H1 2025 despite ongoing volatilities. Going forward, with supportive growth policies and sustained occupier momentum, both India and the wider APAC region are well placed for a strong performance in the second half of 2025," said Arpit Mehrotra, managing director, office services, Colliers India.

 

Demand is expected to continue in H2 2025 but supply additions may exert pressure on vacancy rates. Rental growth is anticipated in select high-performing markets, said Colliers.