Office space demand across Asia Pacific’s top 11 markets surged 15.9% annually to 8.8 million sqm (94.7 million sq ft). India, Mainland China, and Japan led this growth. The second half of 2024 was particularly strong, with demand rising 6.1% to 4.7 million sqm (50.6 million sq ft). Notably, India, Japan, and Australia saw significant growth, while leasing activity in New Zealand, the Philippines, South Korea, Hong Kong, and Taiwan remained slow.
India contributed over 60% of the new office supply in APAC during H2 2024. It recorded 3.44 million sqm (37.0 million sq ft) of leasing, an 11% YoY increase. Technology firms and flex space operators drove much of this demand. Bengaluru and Hyderabad led the charge, together accounting for more than half of India’s Grade A space demand and supply.
Technology Firms And GCCs Fuel Leasing In India
Technology firms and Global Capability Centers (GCCs) were key drivers of leasing activity. GCCs leased 1.4 million sqm (~15 million sq ft), making up over 40% of India’s leasing in H2 2024. India’s office market remains strong due to factors like rental arbitrage, a skilled talent pool, and language proficiency. Economic growth and the demand for modern office spaces will likely sustain leasing activity through 2025.
Colliers’ Asia Pacific Office Market Insights H2 2024 and Outlook 2025 report predicts continued growth in office space demand across APAC in 2025, with vacancy rates expected to stay stable. While most markets saw a drop in new supply, India experienced a 7% YoY increase in office completions.
Mike Davis, Colliers’ Managing Director of Occupier Services for APAC, expects strong demand to continue, driving market shifts, especially in peripheral business districts. He emphasized that the demand for high-quality, flexible office spaces will remain a key trend moving forward.
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