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

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Large Enterprise Deal Boosts Pune’s Premium Office Market

The leased office spans Smartworks’ Marisoft campus, a strategic commercial cluster in Kalyani Nagar that offers strong connectivity, robust social infrastructure, and access to a deep talent pool.

The integrated workspace includes collaboration zones, meeting rooms, recreational areas, convenience retail, wellness amenities, and fully tech-enabled infrastructure—core to Smartworks’ campus-led managed office model, which has been powering its enterprise expansion.

Enterprise Demand Driving Growth

“Our large-format campuses are built for scale, speed, and unified workplace experiences,” said Neetish Sarda, Founder & Managing Director, Smartworks.
He noted that the 1,000+ seat cohort, which accounted for only 12% of rental revenue three years ago, has now tripled to 35%, underscoring the company’s rising share of large enterprise clients.

Smartworks’ model allows businesses to expand across multiple cities, grow within existing clusters, or consolidate fragmented offices into larger, unified campuses—an increasingly preferred approach for GCCs and multinationals.

Financial Performance Reflects Robust Momentum

Earlier this month, Smartworks reported strong Q2 FY26 results, including:

• 21% YoY growth in revenue to ₹4,248 million
• 46% YoY rise in normalised EBITDA
• Healthy EBITDA margin of 16.4%
• Net-debt negative position
• Operating cash flow of ₹614 million

These numbers reflect Smartworks’ disciplined expansion strategy, improving operational efficiency, and the growing acceptance of its managed campus format across India’s prime office markets.

Smartworks’ Pan-India Footprint

With a ~12.7 million sq ft portfolio across 14 cities, Smartworks caters to a diversified client mix including GCCs, Forbes 2000 companies, multinationals, and large Indian enterprises.
The company notes that 30% of its rental revenue now comes from clients operating across multiple locations—evidence of its growing relevance in nationwide enterprise workspace strategies.

Analysis — Large Enterprise Leasing Continues to Power Managed Office Growth

The Smartworks–Wolters Kluwer deal reflects the continued shift towards flexible, scalable, experience-led campuses among global and domestic enterprises. Pune, particularly the Kalyani Nagar–Yerwada belt, remains a hotspot for GCCs and tech-driven companies, making the lease a timely expansion move.

Smartworks’ strong quarterly performance and rising share of large-format deals also indicate:

• GCC consolidation trends are accelerating
• Enterprises prefer managed campuses over fragmented traditional offices
• Pune’s office market continues to attract high-quality occupiers

With demand for flexible yet controlled work environments growing, Smartworks is well-positioned to capture a larger share of India’s evolving office landscape.

Also Read: Corporate Biggest User Of Coworking Spaces.

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Large-Sized Deals Dominate Market

Colliers noted that large-sized deals (≥100,000 sq. ft.) remained the backbone of the office market, contributing 51% of total leasing or 17.2 million sq. ft. in H1 2025. Of this, tech occupiers drove 43% of the large deals, followed by BFSI at 28%. The steady momentum signals confidence among technology firms in India’s talent pool and long-term market potential.

“Since 2020, tech occupiers have leased nearly 85 million sq. ft. of conventional office space, accounting for the bulk of large transactions,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. “Despite global uncertainties, we expect technology occupiers to maintain this momentum through 2025, largely fuelled by GCC expansions.”

Bengaluru & Hyderabad Lead Demand

Bengaluru and Hyderabad continue to dominate, together accounting for about 50% of India’s total tech leasing. Bengaluru, supported by its deep IT ecosystem and skilled workforce, remains a top-five global tech hub. Hyderabad has gained momentum through competitive costs, supportive policies, and high-quality office developments. Secondary hubs like Pune, Chennai, and Delhi-NCR also contributed significantly.

Flex Spaces on the Rise

The report also highlighted that tech firms are adopting hybrid work strategies, driving 40–50% of flex space demand in major IT hubs. Flexible workspaces in Bengaluru, Hyderabad, and Pune are particularly witnessing strong traction, helping firms optimize costs while maintaining scalability.

Outlook

With AI adoption, cloud computing, and cybersecurity reshaping global operations, India’s IT industry is entering a structural growth phase. According to NASSCOM, GCCs in India are projected to rise from 1,800 today to 2,400 by 2030, generating revenues of over USD 100 billion. This transformation is expected to keep the technology sector at the centre of India’s office real estate market for years to come.

Also Read: Office Leasing in Q1 2025 Rises 15% YoY to 15.9 Million Square Feet Across Top 7 Cities

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As India’s commercial office market rides a wave of record-breaking leasing, Mumbai Metropolitan Region (MMR) has carved out a dominant position as the country’s leading hub for BFSI Global Capability Centers (GCCs), according to a new report by JLL.

While Bengaluru retains the lion’s share (40%) of GCC leasing since 2022, Mumbai has clearly emerged as the financial services anchor, thanks to its legacy as India’s banking capital and its mature commercial infrastructure.

Mumbai’s GCC Snapshot

“Mumbai is the undisputed leader when it comes to BFSI-focused GCCs,”
said Rahul Arora, Senior MD, JLL India.
“The city’s historical banking and finance legacy, coupled with a maturing digital ecosystem, has made it the go-to location for global financial institutions looking to scale their India operations.”

Mumbai: Banking on BFSI GCCs

As per JLL’s findings:

• Mumbai leads in BFSI GCC leasing volume across India.
• Companies prefer the city for its access to financial regulators, proximity to HQs, and abundance of finance professionals.
• Demand is especially strong from multinational banks, insurance companies, asset management firms, and digital finance players setting up innovation centers.

Core Corridors Fueling Growth

Across these corridors, JLL reports that 65–98% of GCC activity is concentrated in high-grade office parks offering ESG-compliant, tech-enabled campuses with excellent infrastructure.

BFSI & Beyond: Mumbai’s Expanding Role

Although BFSI is the core driver, Mumbai is also witnessing:

• Gradual growth in consulting and legal services GCCs
• Fintech R&D centers targeting digital banking innovations
• Uptick in shared services hubs supporting global operations

This evolution highlights Mumbai’s growing role as a multi-sectoral innovation hub, not just a financial capital.

Market Comment

“The maturity of MMR’s office ecosystem, policy support for financial innovation, and talent availability give it a long-term edge,”
noted Dr. Samantak Das, Chief Economist & Head of Research, JLL India.
“As BFSI firms modernize their global operations, MMR will remain a core GCC destination, especially for high-value financial and compliance services.”

India-Wide GCC Momentum – MMR Stays Ahead

• India GCC leasing (2022–H1 2025): ~230 million sq. ft.
• GCC share in total leasing: 35.4%
• BFSI + ER&D (2024–H1 2025): 51.5% of all GCC leasing
• Mumbai BFSI GCCs: Among highest leasing share, surpassing Chennai and Hyderabad in this segment

Outlook for MMR

Also Read: MMR Saw 16,510 Launches in Q3 of 2021, 140% Increase from Q2

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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

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

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The surge in leasing activity is predominantly driven by fresh leasing, which accounted for over 75% of the total GLV in Q3, reflecting significant demand for new office spaces. Net absorption, a key indicator of the expansion of occupied space, reached 12.6 MSF during the quarter—an impressive 32% increase from the previous quarter and a 54.7% increase from the same period last year. Bengaluru led the way with 4.09 MSF of net absorption, followed by Mumbai with 2.6 MSF and Delhi NCR with 1.8 MSF. Pune also saw a substantial rise, with a 68.8% YoY growth in net absorption, reaching 1.5 MSF.

Cushman & Wakefield’s Q3 2024 office data also highlighted a historic low in vacancy rates, which dropped to 17.1%—the lowest recorded in 14 quarters. This sharp reduction of 60 basis points (bps) from the previous quarter indicates a high demand for office spaces across India’s top cities. Notably, Ahmedabad and Mumbai saw the most significant drops in vacancy rates, with reductions of between 180 to 230 bps, followed by Kolkata and Delhi NCR, which experienced declines of 110 to 140 bps.

The data also revealed that the gross leasing volume for the year-to-date (YTD) period has already crossed 66.7 MSF, nearing 90% of the total leasing volume recorded in 2023. The current quarterly run rate of around 20 MSF suggests that the office sector is on track to surpass 80 MSF by the end of 2024, potentially breaking last year’s record and achieving the highest leasing volume in the sector’s history. With net absorption for YTD at 33.67 MSF, the sector is also on course to exceed 43 MSF by year-end, marking a new high.

Despite strong demand, new office supply has been slower to enter the market, with an average of approximately 10 MSF added each quarter during the first nine months of 2024. This represents the slowest supply increase in the post-COVID period. However, even with this limited supply, rental rates across the top eight cities rose by 4-5% YoY. Cities like Mumbai, Chennai, Ahmedabad, and Delhi NCR saw the steepest rental increases, driven by tight vacancy rates in core markets.

Global Capability Centers (GCCs) continued to play a pivotal role in driving demand, contributing 30% of the total GLV in Q3 2024—marking the highest share ever for this segment since 2020. The IT-BPM sector was the largest contributor to GLV, accounting for 32%, followed by flexible workspaces (15%) and BFSI (14%). On a city level, Bengaluru remained the leader, contributing 27.7% to the total GLV, followed by Mumbai (21%) and Delhi NCR (15.1%).

Outlook for the Future

With 2024 already shaping up to be a record-breaking year, industry experts predict that leasing activity will continue to outpace supply in the near future, driving rental growth in key markets. Anshul Jain, Chief Executive, India, Southeast Asia, and APAC Tenant Representation at Cushman & Wakefield, commented, “The strong fundamentals in the market, particularly driven by Global Capability Centers (GCCs), position India as a key hub for innovation and outsourcing. We are likely to see leasing activity surpass 80 MSF this year.”

Veera Babu, Managing Director of Tenant Representation at Cushman & Wakefield, added, “With nearly 90% of last year’s GLV already achieved, we expect demand to continue exceeding supply, particularly in core markets, which could push rental prices higher. While we anticipate an increase in supply, current market conditions suggest that demand will continue to outstrip availability in the coming quarters.”

The Indian office sector is set to remain a strong performer, with both demand and rental rates continuing to rise in the face of limited supply. As India solidifies its position as a key destination for global businesses, the future looks bright for the office leasing market.

Also Read: Godrej Properties Wins Bid for Luxury Housing Plots in Gurugram

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