India continues to lead the Asia-Pacific (APAC) office market with more than 70% of the total demand in the July-September quarter. According to a report by Colliers India, India’s office leasing activity reached 17.3 million square feet, making it the top performer in the region.
In India, Bengaluru and Hyderabad accounted for more than half of the demand for Grade A office space. These two cities continue to drive leasing activity, with strong demand from various sectors.
Office Market Demand in India
India also saw over 14.4 million square feet of new office space completed in the third quarter, following the strong demand trends. The addition of this new space has kept vacancy rates stable at around 17%.
While rental growth varies across cities, the overall rental property cycle in India aligns with markets like Australia, Japan, and New Zealand. Competitive rental prices and strong demand from various sectors are expected to strengthen India’s position in the APAC office market. According to Arpit Mehrotra, Managing Director of Office Services at Colliers India, India’s office market continues to show resilience due to its competitive rental rates and strong demand.
Forecast for 2025
The Asia-Pacific office market is expected to grow further in 2025. The third-quarter data reveals a 10.7% year-on-year increase in demand across major APAC markets. India, New Zealand, and Singapore are experiencing particularly strong demand, with annual growth in office leasing in these countries exceeding 30%.
India’s office leasing market shows no signs of slowing down. Colliers India predicts that in 2024, India could see between 54 to 64 million square feet of Grade A office space leased, further solidifying its role as a major player in the APAC commercial real estate market.
Future Supply and Rentals Outlook
The supply of office space in major APAC markets is expected to increase due to several significant projects being completed. However, the overall rental growth is predicted to remain steady, balancing out the demand-supply dynamics despite uncertainties in certain markets.
