According to a new report from Colliers, “Asia Pacific Office Market Insights H1 2025,” India, Mainland China, and Japan dominated office leasing activity in the first half of the year, accounting for more than 90% of total demand across 11 key markets. The report highlights a 9.6% year-on-year increase in leasing activity, reflecting a broader recalibration of workplace strategies across the region.
Growth in Demand and Supply
The report notes significant growth in demand in Singapore, which saw a twelvefold increase in leasing volumes year-on-year. The Philippines and Japan also recorded robust gains of 56% and 55% respectively. New supply also saw a sharp increase, rising 45.4% year-on-year to 4.8 million square metres (51.7 million square feet), outpacing demand in most markets. Australia, New Zealand, and Japan registered strong growth in new supply, each with an annual increase exceeding 80%. Overall, eight out of 11 markets saw an increase in new supply during H1 2025.
India’s Strong Performance
India remains a key driver of the APAC office market, with a more than 70% share in leasing and 48% of new supply in H1 2025. This robust performance is attributed to factors like occupier expansion, sustained GCC (Global Capability Centers) activity, and a diversifying demand base. Domestic demand is particularly strong, accounting for 46% of the total leasing of 3.13 million square metres (33.7 million square feet) across the top seven Indian cities.
Future Outlook
The report indicates that a “flight to quality” is reshaping the region’s office landscape, as companies seek prime Grade A assets that align with their values and future ambitions, including flexibility and sustainability. While ongoing supply additions may pressure vacancy rates, rental growth is anticipated in select high-performing markets. The structural shift towards premium, green-certified properties is expected to define the next phase of growth, fostering a more resilient and future-ready office landscape.
Also Read: India Defies Global Office Rental Slump, Posts Record Growth in Leasing
