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

The post India, Mainland China and Japan Drive 90% of Asia’s Office Leasing in H1 2025 appeared first on Square Feat India.

CLI aims to double its funds under management (FUM) to S$200 billion by 2028, with a target of increasing operating earnings more than twofold to over S$1 billion by 2028-2030. The company plans to achieve this growth through its four Fee Income-related Businesses (FRBs), including the expansion of its REITs platform, private funds, lodging, and commercial management. A mix of organic growth, new listings, and mergers and acquisitions (M&A) will drive this expansion.

A key component of CLI’s strategy involves M&A, with significant capital allocated for new growth engines. On 20 November 2024, CLI announced a S$280 million (US$214 million) investment to acquire a 40% stake in SC Capital Partners Group (SCCP), marking its first foray into Japan’s REIT market. This move will increase CLI’s FUM by S$11 billion, enhancing its presence in Japan and broadening its geographical footprint.

CLI’s Group CEO, Mr. Lee Chee Koon, emphasized that the company’s foundation in Asia Pacific would be complemented by further diversification into key international markets, including Japan, Korea, Australia, the US, and Europe. He also highlighted CLI’s ongoing focus on capital efficiency, with over S$24 billion recycled since 2021, channeling significant investments into private and public funds.

The company’s growth strategy is underpinned by three major investment themes: demographics, disruption, and digitalization, with a focus on sectors such as health, logistics, data centers, and renewables.

Also Read: APAC Investor Optimism to Drive Institutional Investments in Indian Real Estate in 2025

The post CapitaLand Investment Plans Global Expansion and M&A Strategy for Growth appeared first on Square Feat India.

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.

Also Read: Metro Group Unveils ‘The Presidential’ in Thane with India’s First Live Construction Tracker

The post India Leads Asia Pacific Office Market with 70% of Demand in Q3 2024, Driven by Flight to Quality appeared first on Square Feat India.

The Asia Pacific region is a significant player in global capital, with four of the top ten sources—including Singapore, Hong Kong, Japan, and China—identified in the report. Japan and China emerged as leading destinations for standing assets, while Australia also featured in the top ten.

Investment Trends in India

In India, investments in industrial and warehousing assets, along with office properties, comprised nearly three-quarters of total investments in the same period. Notably, investments in industrial assets surged fivefold compared to the previous year, driven by rising demand from third-party logistics (3PL) and e-commerce sectors.

Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India, noted, “Foreign investment in India’s industrial and warehousing sector has been gaining significant traction. In H1 2024, nearly 70% of total foreign inflows were directed towards these assets. The growing appeal of India reinforces long-term confidence in the sector.”

Strong Performance of Ready Assets

During the first half of 2024, ready assets remained a focal point, constituting 70% of total investments, with USD 3.5 billion in inflows. Despite the emphasis on established properties, India’s rapid growth and infrastructure developments continue to present numerous opportunities in developmental assets.

Vimal Nadar, Senior Director and Head of Research at Colliers India, stated, “Backed by robust domestic demand and healthy GDP growth, investments in Indian real estate will remain steady. With a 73% share of foreign inflows in H1 2024, we expect these trends to continue, even as North America and EMEA lead in foreign investment.”

Future Outlook

The report anticipates that the APAC region will maintain its status as a hub of economic activity, offering diverse investment opportunities across traditional sectors such as residential, commercial, and industrial logistics, as well as emerging sectors like data centers and cold storage. Chris Pilgrim, Managing Director of Global Capital Markets for Asia Pacific at Colliers, noted, “Improving fundamentals are set to create new investment opportunities, with global rate cuts signaling positivity for real estate markets.”

As India solidifies its position as a prime destination for cross-border capital, the ongoing investments in its real estate sector are poised to shape the landscape for years to come.

Also Read: Housing Prices Rise Across Top Indian Cities, Reports CREDAI-Colliers-Liases Foras

The post India Ranks 3rd in Global Cross-Border Capital Destinations for Land and Development Sites appeared first on Square Feat India.

By Varun Singh

Indian real estate sector may not be doing good overall. However, the Indian office real estate sector has performed pretty well in the last few days.

According to reports, of the top 8 Indian cities, 6 feature in the top 10 cities of Asia Pacific region,  in terms of annual leasing transaction volumes.

A report by Knight Frank reveals that, India Office sector receives over USD 2,900 mn private equity.

Bengaluru with 15.3 mn sq ft and Hyderabad with 12.8 mn sq ft were the second and third largest office markets in the Asia Pacific region in terms of office leasing transactions.

This was followed by Mumbai with 9.7 mn sq ft and National Capital Region with 8.6 mn sq ft and feature ahead of cities such as Beijing, Shanghai, Singapore, Jakarta, Kuala Lumpur and several others.

TOP 10 CITIES IN ASIA PACIFIC (APAC) REGION BASED ON ANNUAL TRANSACTION VOLUMES (2019) 

According to Knight Frank Research, 2019 was a milestone year for the Indian office market. The All-India office transaction activity reached a historic high of 60.6 mn sq ft (5.6 mn sq m) in 2019, predominantly driven by demand from these three segments – IT, BFSI and co-working.

Some of the Indian cities have stepped on the pedestal and stolen the limelight from the other cities in the Asia-Pacific region. 

Four out of the top six cities in India except for Mumbai and NCR have single-digit vacancy levels.

The problem of supply crunch is acute in markets of Pune and Bengaluru which had a city level vacancy of 4.2% and 4.8% respectively at the end of 2019.

For Mumbai and NCR, the vacancy levels maybe higher at a city level, however, for the sought-after business districts of these cities like Bandra Kurla Complex and Lower Parel in Mumbai and Golf Course Extension Road and DLF Cybercity in Gurugram, the vacancy levels are in single digits.

The robust demand from occupiers, low vacancy rate, compression in cap rate and rent growth highlights the strong fundamentals of the Indian office market.

EQUITY INVESTMENTS IN OFFICE ASSETS IN INDIA

Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The availability of vast talent in India in the fields of Science, Technology, Engineering and Mathematics (STEM) and the cost arbitrage makes India one of the most attractive office destinations for companies in the BFSI and IT sectors. A balanced demand supply equilibrium has led to double-digit rent growth in most of leading Indian markets, making the investment premise very promising and the PE investments of USD 13 billion are a testament to it.”

Since 2011, the Indian real estate sector has received an equity investment of USD 22.7 billion across the office, retail and warehousing assets in the previous decade. Of the total, The Indian office assets garnered 57% share or USD 13 billion worth of these equity investments.

Also Read: Office transactions hit historic high of 60.6 msf in 2019

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