India drove 16% YoY surge in APAC office demand in 2024; market expansion to continue in 2025: Colliers

• India, Mainland China and Japan drove over 90% of the office space demand in 2024
• During H2 2024, leasing in Australia grew manifold, while India and Japan saw notable YoY growths of 11% and 5%, respectively
• India witnessed 3.44 million sqm (37.0 million sq ft) of leasing during H2 2024, 11% YoY rise
• India accounted for over 60% of the new supply in 11 top markets of the APAC region during H2 2024

BENGALURU, India, March 7, 2025 /PRNewswire/ -- Demand for office space across Asia Pacific's (APAC) top 11 markets surged 15.9% annually to 8.8 million sqm (94.7 million sq ft), led by India, Mainland China and Japan. H2 2024 was particularly strong, with office demand in the region reaching 4.7 million sqm (50.6 million sq ft), a 6.1% rise compared to H2 2023. Demand growth in H2 2024 was notable in markets such as India, Japan and particularly impressive in Australia, which had a lower base. Leasing activity, however, remained relatively subdued in New Zealand, the Philippines, South Korea, Hong Kong, and Taiwan in H2 2024.

Colliers' latest report, Asia Pacific Office Market Insights H2 2024 and Outlook 2025, found the significant increase in APAC office space demand to be driven by corporate expansion, return-to-office and the growth of global capability centres. The report captured the key markets of Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, Philippines, Singapore, South Korea and Taiwan. 

Office market activity was particularly strong in India, which saw 6.17 million sqm (66.4 million sq ft) of leasing during 2024, led by a stronger second half. With 3.44 million sqm (37.0 million sq ft) of gross leasing in H2 2024, India continued to lead office leasing activity in the APAC region, witnessing an 11% YoY rise compared to H2 2023, according to new research from leading global diversified professional services company Colliers.

In India, Technology firms and Flex space operators together accounted for 46% of the total take-up across the top 6 cities during H2 2024. New supply remained robust, with over 2.81 million sqm (30.3 million sq ft) of completions in H2 2024, a 7% YoY growth across the top six cities. Bengaluru and Hyderabad led the office market activity during H2 2024, cumulatively driving more than half of India's Grade A space demand and supply. Amidst an uptick in both leasing activity and new supply, India vacancy levels largely remained stable at around 17%.

"The APAC office market remained upbeat during H2 2024, with demand rising 6.1% YoY to 4.7 million sqm (50.6 million sq ft). Office space demand in the region continued to be driven by India, Mainland China and Japan. At the same time, leasing in Australia grew manifold during H2 2024, albeit on a comparatively lower base. New office supply declined across most markets in H2 2024, resulting in a 16.9% annual drop at the APAC level. Contrary to larger trends, India witnessed 7% YoY growth in new supply, contributing 60% of the new supply in APAC region during H2 2024. Looking ahead, we anticipate improved demand-supply dynamics in 2025, supported by balanced economic growth and likely moderation in inflation," said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

"With over 70% share in leasing and 60% share in new supply in H2 2024, India remains one of the leading office markets in the APAC region. Strong domestic leasing, coupled with increasing Grade A space uptake by Global Capability Centers (GCCs), continues to fuel office demand in India. During H2 2024, GCCs leased 1.4 million sqm (~15 million sq ft) of office space in India, accounting for over 40% of the overall leasing during the period. Factors such as rental arbitrage, abundant talent, and language proficiency will continue to support the expansion of GCCs and outsourcing hubs in India," said Vimal Nadar, Senior Director & Head of Research, Colliers India.

Colliers' research estimates both demand and supply to strengthen across most APAC markets in 2025, with vacancy rates expected to remain rangebound.

Mike Davis, Colliers' Managing Director of Occupier Services, Asia Pacific, said. "The outlook for the office occupier market remains positive, with strong demand set to drive further market shifts in the year ahead. High-activity markets may witness continued rental growth, particularly in peripheral business districts. The overall outlook for 2025 indicates a sustained momentum for the APAC office leasing market. We expect to see steady growth and continued resilience, driven by stable economic growth, corporate expansions, and the return-to-office trend. The flight-to-quality will dominate, with occupiers seeking modern, flexible and sustainable spaces that foster collaboration and productivity."

About Colliers

Colliers (NASDAQ: CIGI) (TSX: CIGI) is a leading global diversified professional services company, specializing in commercial real estate services, engineering consultancy and investment management. With operations in 70 countries, our 22,000 enterprising professionals provide exceptional service and expert advice to clients. For nearly 30 years, our experienced leadership — with substantial inside ownership — has consistently delivered approximately 20% compound annual investment returns for shareholders. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure and real assets to accelerate the success of our clients, investors and people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

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