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.

Colliers’ report, India Office: Setting New Standards for 2025, was released at the FICCI 18th Real Estate Summit and highlights the evolution of India’s commercial real estate from a supply-driven to an occupier-led market. Developers are now focusing on sustainability, energy efficiency, and flexible office spaces to meet evolving tenant needs.

Office Leasing Trends in 2025

India’s top six cities—Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune—are expected to drive leasing growth, with Bengaluru leading the market at over 20 million sq ft, followed by Hyderabad and Delhi-NCR at 10-15 million sq ft each.

Projected Office Leasing and Supply in 2025 (Top Cities):

Source: Colliers

New office supply is estimated at 60-65 million sq ft, driven primarily by Bengaluru, Hyderabad, and Delhi-NCR. Vacancy rates across top cities are expected to decline to 15-16% as demand increases.

Sector-Wise Demand: Engineering, BFSI, and Flex Spaces to Lead

The biggest leasing growth is expected in the engineering & manufacturing, BFSI, and flex space sectors, which are projected to account for nearly half of all office leasing in 2025.

Source: Colliers

Bengaluru will see the highest demand from engineering and manufacturing firms, while Mumbai remains a hub for BFSI. Additionally, flex spaces are set to grow significantly, accounting for nearly 20% of total leasing activity in 2025.

Global Capability Centers (GCCs) to Play a Bigger Role

GCCs, which saw 41% growth in 2024, are expected to contribute 25-30 million sq ft in leasing activity in 2025. The top markets for GCCs will continue to be Bengaluru and Hyderabad, with a 70% contribution from US-based companies.

Source: Colliers

Sustainability and REIT Growth to Shape Future Developments

With India’s REIT market gaining traction, developers are focusing on high-quality, sustainable real estate to attract investors and tenants. The adoption of green-certified buildings and energy-efficient designs is expected to accelerate India’s transition to a net-zero carbon economy.

Vimal Nadar, Senior Director & Head of Research, Colliers India, stated:
“India’s commercial real estate is shifting towards high-quality, rent-yielding assets, with developers increasingly prioritizing green-certified buildings. In 2025, an estimated 80-85% of office demand will be concentrated in green-certified developments.”

Shift Towards Sustainability

India’s office real estate sector is set for another strong year in 2025, driven by rising occupier demand, expansion of GCCs, and a shift toward sustainability. With leasing activity expected to remain robust at 65-70 million sq ft, Bengaluru, Hyderabad, and Delhi-NCR will lead the market, while sectors like engineering, BFSI, and flex spaces will drive demand.

As businesses continue expanding and evolving, developers must adapt to an occupier-driven market, ensuring high-quality, flexible, and sustainable office spaces that align with changing workforce needs.

Also Read: Gurgaon office leasing

The post India’s Office Market Poised for Strong Growth in 2025, Led by Engineering, BFSI, and Flex Spaces appeared first on Square Feat India.