India Drives 16% YoY Surge in APAC Office Demand in 2024

07 Mar 2025 CW Team

H2 2024 proved particularly strong, with leasing activity rising by 6.1% YoY to 4.7 million sqm (50.6 million sq ft). While India and Japan saw steady growth of 11% and 5% YoY, Australia witnessed an unprecedented spike in leasing, albeit from a lower base. Conversely, markets like New Zealand, the Philippines, South Korea, Hong Kong, and Taiwan experienced subdued demand in H2 2024.

India Remains the Undisputed Leader in Office Space Leasing India continued its dominance in APAC’s office market, recording 6.17 million sqm (66.4 million sq ft) of leasing activity in 2024. The country’s office sector saw a notable boost in H2, with 3.44 million sqm (37.0 million sq ft) leased—an 11% YoY increase compared to H2 2023.

Key Trends Driving India’s Office Market Growth Technology and Flex Space Operators: Together, they accounted for 46% of total office space take-up in India’s top six cities in H2 2024.

New Supply Remained Strong: Over 2.81 million sqm (30.3 million sq ft) of Grade A office space was completed in H2 2024—a 7% YoY increase.

Leading Office Markets: Bengaluru and Hyderabad were the top-performing cities, contributing over 50% of India’s office leasing activity and supply.

Stable Vacancy Rates: Despite the increase in supply, India’s overall office vacancy levels remained steady at around 17%.

Global Capability Centres (GCCs) Propel India’s Office Market Forward A significant contributor to India’s office leasing surge has been the expansion of Global Capability Centres (GCCs). These corporate hubs leased 1.4 million sqm (~15 million sq ft) of office space in H2 2024, representing over 40% of total leasing activity.

2025 Outlook: APAC Office Markets Poised for Continued Growth Looking ahead, APAC’s office market is set to maintain its upward trajectory in 2025, with both demand and supply expected to strengthen. Vacancy rates are likely to remain stable, while leasing momentum will be driven by corporate expansion and a sustained return-to-office trend.

With India leading the charge, the APAC office market is on track for another strong year in 2025, driven by economic stability, corporate expansion, and evolving workplace dynamics.

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The Asia-Pacific (APAC) office real estate market witnessed remarkable growth in 2024, with demand surging 15.9% year-on-year (YoY) to 8.8 million sqm (94.7 million sq ft) across the region’s top 11 markets. According to Colliers’ latest report, Asia Pacific Office Market Insights H2 2024 and Outlook 2025, India, Mainland China, and Japan collectively accounted for over 90% of total office space demand. H2 2024 proved particularly strong, with leasing activity rising by 6.1% YoY to 4.7 million sqm (50.6 million sq ft). While India and Japan saw steady growth of 11% and 5% YoY, Australia witnessed an unprecedented spike in leasing, albeit from a lower base. Conversely, markets like New Zealand, the Philippines, South Korea, Hong Kong, and Taiwan experienced subdued demand in H2 2024. India Remains the Undisputed Leader in Office Space Leasing India continued its dominance in APAC’s office market, recording 6.17 million sqm (66.4 million sq ft) of leasing activity in 2024. The country’s office sector saw a notable boost in H2, with 3.44 million sqm (37.0 million sq ft) leased—an 11% YoY increase compared to H2 2023. Key Trends Driving India’s Office Market Growth Technology and Flex Space Operators: Together, they accounted for 46% of total office space take-up in India’s top six cities in H2 2024. New Supply Remained Strong: Over 2.81 million sqm (30.3 million sq ft) of Grade A office space was completed in H2 2024—a 7% YoY increase. Leading Office Markets: Bengaluru and Hyderabad were the top-performing cities, contributing over 50% of India’s office leasing activity and supply. Stable Vacancy Rates: Despite the increase in supply, India’s overall office vacancy levels remained steady at around 17%. Global Capability Centres (GCCs) Propel India’s Office Market Forward A significant contributor to India’s office leasing surge has been the expansion of Global Capability Centres (GCCs). These corporate hubs leased 1.4 million sqm (~15 million sq ft) of office space in H2 2024, representing over 40% of total leasing activity. 2025 Outlook: APAC Office Markets Poised for Continued Growth Looking ahead, APAC’s office market is set to maintain its upward trajectory in 2025, with both demand and supply expected to strengthen. Vacancy rates are likely to remain stable, while leasing momentum will be driven by corporate expansion and a sustained return-to-office trend. With India leading the charge, the APAC office market is on track for another strong year in 2025, driven by economic stability, corporate expansion, and evolving workplace dynamics.

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