India, New Zealand, and Singapore Lead with Over 30% Annual Leasing Growth in Q3 2024
The Asia Pacific office market has shown a robust recovery, with demand surging 10.7% year-on-year (YoY) in Q3 2024, according to the latest Colliers data. The report highlights a significant increase in leasing activity across the region, with demand reaching 2.2 million square meters (23.7 million square feet) in the third quarter, signaling a positive outlook for 2025.
The growth was particularly strong in key markets such as India, New Zealand, and Singapore, where annual leasing activity exceeded 30%. India continued to dominate the region, accounting for over 70% of total demand in Q3 2024, with demand primarily driven by Bengaluru and Hyderabad. India alone saw leasing activity of 1.61 million square meters (17.3 million square feet), far outpacing other markets like China, which contributed 17% of the region’s total demand.
As a result of this surge in demand, average rental rates for Grade A office spaces in major Indian cities rose by up to 10% annually in Q3 2024. This uptick follows a significant recovery phase in India’s office market, which is now poised for expansion. Experts expect rental growth to continue across the country’s top cities, aligning with trends seen in markets like Australia, Japan, and New Zealand.
“The Indian office market is entering a new phase of growth, with increasing demand for premium, ESG-aligned office spaces,” said Arpit Mehrotra, Managing Director of Office Services at Colliers India. “Occupiers’ appetite for best-in-class facilities and green-certified buildings is driving leasing activity, and we expect to see further rental firming as developers integrate sustainable features into new developments.”
The report also notes that demand for high-quality office spaces is a key driver of growth across the region, as businesses prioritize productivity, sustainability, and adaptability in their work environments. This trend, known as the “flight to quality,” is particularly noticeable in India, where premium office spaces are seeing the most significant uptake.
“With the region’s economic outlook remaining positive, office markets are expected to stay resilient, with a strong focus on sustainable, high-quality workspaces,” said Vimal Nadar, Senior Director & Head of Research at Colliers India. “India’s commercial real estate market, in particular, is set to continue its upward trajectory, with a projected uptake of 5-6 million square meters (54-64 million square feet) of Grade A office space in 2024.”
As supply catches up with demand, significant project completions in major APAC markets are expected to fuel further growth in the coming quarters. While rental growth is anticipated to remain stable across the region, the supply-demand balance will play a crucial role in shaping future market conditions.
Mike Davis, Colliers’ Managing Director of Occupier Services in APAC, concluded: “The office market in Asia Pacific is primed for continued growth, driven by the evolving needs of occupiers who prioritize flexibility, sustainability, and innovation in their workspaces.”
The data suggests a promising future for the Asia Pacific office market, with India leading the way as a key player in the region’s commercial real estate landscape.
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