The report highlights India as the clear leader in the region, accounting for 68% of total office leasing activity across Asia Pacific during the year. Strong demand from occupiers, expansion of global capability centres (GCCs), and steady economic growth have positioned India as the dominant office market in the region.

India, China and Japan Drive APAC Office Demand

According to the Colliers Asia Pacific Office Market Insights – February 2026 report, the majority of office demand in the region came from India, Mainland China, and Japan, which together accounted for over 90% of total leasing activity in 2025.

While the largest economies dominated overall demand, several smaller markets also saw significant growth. Markets such as the Philippines, New Zealand, and Hong Kong recorded multi-fold increases in leasing activity, driven by improving business sentiment and renewed corporate expansion.

Office Supply Also Rises Across Key Markets

The report noted that new office supply across the top 11 Asia Pacific markets increased 19% year-on-year, reaching 9.6 million square metres (103.3 million sq ft) in 2025.

Most of the supply growth was concentrated in India, Mainland China, and Singapore, which together contributed 82% of the total new office completions during the year.

Overall, eight of the eleven major markets recorded an increase in new office supply, indicating strong developer confidence in the region’s commercial real estate sector.

India Accounts for 68% of Leasing and 55% of New Supply

India emerged as the largest driver of office market growth in Asia Pacific, accounting for:

• 68% of total leasing activity across the region
• 55% of the new office supply delivered in 2025

According to Vimal Nadar, National Director and Head of Research at Colliers India, the country’s strong fundamentals continue to attract both occupiers and investors.

“India continues to drive the APAC office market, firmly establishing itself as a dominant demand centre and key location for investments. Backed by steady economic growth, a strong occupier base and expanding GCCs, India’s office market is well positioned to sustain its growth momentum,” Nadar said.

Institutional Investments Surge 21% in 2025

Investor confidence in the office sector also strengthened significantly during the year.

Institutional investments in Asia Pacific’s office segment rose 21% year-on-year to USD 58.6 billion in 2025, reflecting growing interest from global capital in the region’s commercial real estate market.

India recorded one of the strongest increases in office investments, further reinforcing its position as a preferred destination for long-term institutional capital.

Vacancy Levels Expected to Tighten in 2026

Industry experts expect office demand and supply to remain robust in the first half of 2026, supported by continued corporate expansion and a growing preference for high-quality, future-ready office spaces.

According to Arpit Mehrotra, Managing Director – Office Services at Colliers India, the strong leasing momentum seen in the second half of 2025 is likely to continue.

“Office demand across key APAC markets continues to strengthen despite geopolitical frictions. Supported by domestic growth in major economies, controlled inflation and a more accommodative interest rate environment, the region’s fundamentals remain stronger than many global markets,” Mehrotra said.

He added that as vacancy levels decline in prime locations, rentals across key office markets—including India—are expected to move upward in the coming months.

Companies Becoming More Strategic About Office Space

The report also highlights a structural shift in corporate real estate strategies across Asia Pacific.

According to Mike Davis, Managing Director of Occupier Services for Asia Pacific at Colliers, companies are no longer simply expanding office footprints but are recalibrating their workplace strategies.

Instead of taking larger spaces, organisations are focusing on better-located, higher-quality office environments that support hybrid work models and employee experience.

“Businesses are not simply returning to the office; they are recalibrating their portfolios. We are seeing companies make fewer moves, but better ones,” Davis said.

Outlook: India to Remain APAC’s Office Powerhouse

With strong occupier demand, growing global capability centres, and rising institutional investments, India is expected to remain the dominant office market in Asia Pacific in the coming years.

The continued shift toward premium Grade-A office buildings, sustainable workplaces, and strategic corporate expansions is likely to support healthy leasing volumes and rental growth through 2026.

Also Read: India’s office sector can see leasing of 35-38 mn sq ft during 2023

The post India Dominates Asia Pacific Office Market as Regional Leasing Touches 105 Million sq ft in 2025 appeared first on Square Feat India.

While office markets across APAC are showing early signs of stabilisation after nearly two years of rental declines, India stands out as the region’s key growth engine. Prime office rents in major Indian cities are forecast to rise 7–10% year-on-year in 2026, significantly outperforming most regional peers.

Record Leasing Activity Across India’s Top Office Markets

India’s three largest office markets—Bengaluru, Mumbai, and Delhi-NCR—together recorded nearly 50 million sq ft of leasing in 2025, marking a 21% year-on-year increase and the highest annual absorption ever across these cities.

• Bengaluru led the region, registering 13.8% annual prime rental growth in 2025
• Prime rents in Bengaluru rose 7.4% quarter-on-quarter in Q4 2025, the strongest among all tracked APAC cities
• Mumbai and Delhi-NCR posted their second-highest leasing levels, just behind 2024

Beyond GCCs, leasing demand was supported by flex office operators, IT outsourcing firms, and financial services companies, resulting in 5.8% year-on-year rental growth across key Indian markets in 2025.

India Defies Regional Supply Pressures

Across the Asia-Pacific region, over 100 million sq ft of new office supply is expected to come online in 2026, potentially pushing vacancy levels higher and limiting rental upside in several markets.

In contrast, India is expected to add around 43 million sq ft of fresh office supply in 2026, a volume that Knight Frank believes can be absorbed without materially weakening rental momentum.

A pronounced flight-to-quality trend is further strengthening India’s office fundamentals, with occupiers increasingly favouring:

• ESG-compliant buildings
• Flexible and future-ready office layouts
• Prime locations that support talent attraction and productivity

India’s Office Market Enters a Structurally Strong Phase

Commenting on the outlook, Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said:

“India’s office market has decisively moved into a phase of structurally stronger demand with gross absorption surpassing last year’s peak by 20%, closing at 86.4 million sq ft for the top eight cities. Global Capability Centres, third-party IT businesses and financial services firms are not only expanding but also committing early to high-quality developments. This confidence reflects India’s growing role in global business ecosystems.”

He added that strong occupier demand in 2026, coupled with higher supply volumes, will continue to support market traction, making India one of the most compelling office markets globally for both occupiers and investors.

Medium-Term Outlook Remains Positive

Knight Frank notes that office supply across Asia-Pacific is expected to decline sharply from 2027 onwards, tightening the availability of quality spaces. Against this backdrop, India’s current cycle of strong pre-leasing activity, improving asset quality, and sustained occupier confidence positions it favourably for medium-term rental growth and capital value appreciation.

Tim Armstrong, Global Head of Occupier Strategy and Solutions, Knight Frank, said:

“While the region’s growth fundamentals remain strong, trade policy shifts will continue to create uncertainty in 2026. Rising costs and rapid technological change are pushing companies to rethink their real estate strategies. Securing adaptable, high-quality office space with a long-term view will be critical as occupiers balance cost optimisation with future growth.”

Key Highlights at a Glance

• India to lead APAC office growth in 2026
• Prime rents in India to rise 7–10% YoY
• 43 million sq ft of new office supply expected in 2026
• 50 million sq ft leased across Bengaluru, Mumbai & NCR in 2025
• GCCs remain the primary demand driver

Also Read: More Global Offices, More Jobs, More Homes: How GCC Expansion Will Shape India’s Housing Market

The post India to Lead APAC Office Market Growth in 2026 Driven by Strong GCC Demand appeared first on Square Feat India.