India Tops Asia-Pacific Office Market in First Half of 2023

Fast Summary

• India leads the Asia-Pacific office market in H1 2025, accounting for over 70% of total leasing activity and nearly half (48%) of new supply, as per Colliers’ asia Pacific Office Market Insights.
• Leasing across India’s top seven cities reached 3.13 million square metres (33.7 million sq feet), driven by global capability centres (GCCs), domestic corporate activity, and demand for Grade A enduring spaces.
• Domestic firms drove 46% of overall leasing, showcasing their expanding footprint in office space demand.
• India’s performance eclipsed other major APAC markets including China and Japan; collectively, these countries contributed to over 90% of regional leasing volume growth. Smaller markets like Singapore and the Philippines saw localized gains but remain far behind India’s scale.
• India led APAC’s new completions with a strong Grade A office pipeline comprising nearly half of total regional additions in H1 2025, alongside Mainland China and Singapore accounting for another significant share.
• Experts attribute India’s sustained growth to structural changes such as its emergence from cost-arbitrage considerations into a hub for innovation and diverse occupier interest spanning technology, financial services (BFSI), engineering services, among others.
• Macro factors like easing inflation rates and stable interest rates boost occupier confidence while rising supply could temporarily impact vacancy levels in some areas.
• Premium workspaces meeting ESG certainties are attracting investor attention; rental growth is anticipated particularly where there’s limited availability of high-grade inventory.

Indian Opinion Analysis
India’s dominance in the Asia-Pacific office market signals a shift from cyclical trends to structural conversion propelled by wide-ranging demand from global firms and its own domestic corporates. The preference for sustainable Grade A spaces underlines an accelerated move toward future-ready work environments aligned with global ESG standards-a potential draw for international investors seeking green-certified developments.

While robust GDP fundamentals provide long-term stability to this sector’s expansion trajectory, short-term risks loom regarding vacancy pressures due to increasing supply levels in select regions. Rents are expected to grow primarily at locations offering limited premium space options-highlighting an evolving need within companies investing strategically into such pockets rather blindly pace generic etc-s increasing higher circles sustainability & context rising conversations/spurring..

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