India has emerged as the undisputed leader in Asia-Pacific’s (APAC) office leasing market, capturing a massive 47% share of total leasing volumes in 2024, according to Knight Frank’s latest report titled Whiplash to Resilience: Corporate Real Estate in the New World Order.
This leap from 36% in 2015 to 47% in 2024 underlines India’s growing influence in the global corporate real estate landscape, positioning it as a strategic anchor amid shifting trade patterns, supply chain diversification, and macroeconomic disruptions.
India’s Office Market in Numbers
| Metric | 2024 Figure |
|---|---|
| APAC Office Leasing Share | 47% |
| Office Space Transacted in India | 6.68 million sq. m (7.19 million sq. ft) |
| Leading Cities | Bengaluru, Hyderabad, Pune, NCR |
India’s leasing boom is powered by Global Capability Centres (GCCs), multinational firms, and third-party IT service providers, with the demand concentrated in key cities known for talent and infrastructure readiness.
What’s Fueling India’s Growth?
- Cost efficiency and deep talent pools
- Resilient infrastructure and flexible leasing formats
- Strategic realignment of global portfolios (China+N approach)
- Strong domestic consumption base and fiscal prudence
Knight Frank places India in the ‘low exposure, moderate resilience’ category of its Vulnerability Matrix, meaning the country has low dependence on external trade and high capacity to withstand global economic shocks—unlike more export-dependent economies such as South Korea and Singapore.
Industrial Sector Holding Steady
While cities like Shanghai and Beijing struggle with oversupply, Indian industrial hubs in Mumbai, NCR, and Bengaluru have maintained balanced vacancy levels thanks to consistent demand.
New formats such as build-to-suit and flexible leases are gaining popularity, reflecting a shift toward customisation and operational agility.
Shifting Trade Lanes and New Hotspots
Knight Frank’s report also notes that geopolitical factors, including a potential second Trump administration and changes in global tariff regimes, are redefining supply chains and real estate strategies across Asia.
- Southeast Asia (Vietnam, Indonesia) expected to see 15–20% rise in industrial demand
- India remains dominant in office leasing among services-driven economies
Expert View
“India’s rise to a 47% share of APAC leasing volumes is a testament to its robust fundamentals and strategic importance,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
“Corporate real estate strategy must now go beyond expansion—it must be about operational durability and cost performance,” added Tim Armstrong, Global Head, Occupier Strategy and Solutions.
Conclusion
India’s real estate sector is no longer just a cost-saving alternative—it is a cornerstone of global CRE strategy. With rising domestic demand, digital transformation, and supply-side maturity, India is now at the heart of APAC’s corporate property evolution.
Also Read: BFSI and Flex Spaces Drive Office Space Demand in Q3 2024
