Tech sector likely to boost office demand in Asia-Pacific region
Real Estate

Tech sector likely to boost office demand in Asia-Pacific region

The ongoing expansion and innovation of the technology sector in the Asia-Pacific (APAC) region, including India to boost office leasing demand over the next five years.

According to a report by property advisory Colliers, the key drivers of tech companies for the office leasing demand in the region accounting for 20% to 25% of demand for leased office space over the next five years.

According to a Colliers report titled growth engines of innovation, the top five tech centers in APAC are Beijing, Shanghai, Shenzhen, Bengaluru, and Singapore. These five tech centers in APAC are offering infrastructure and talent for occupiers, and are well-positioned to deliver future growth and investment opportunities for owners.

Seoul and Hong Kong are developing strengths in specific areas of technology such as fintech, while Hyderabad and Sydney are emerging as new tech centers.

According to the report, Yangpu in Shanghai, Whitefield, and North Bengaluru in Bengaluru, Hitec City in Hyderabad, and Sydney’s CBD South are among the upcoming sub-markets.

In the past year, global tech companies have been vocal about adopting work-from-home and a hybrid workplace model going forward, leading to the overall risk in leasing volumes of office space across the globe. The information technology (IT) companies have been expanding their workforces which has led to the assumption that they may also need adequate office space to accommodate their employees.

Space per person has dropped from more than 150 sq ft in the early days to around 70 to 80 sq ft, with captive centers and the Business Process Outsourcing (BPO) sector dominating the office landscape in India.

Colliers said that the sector is expecting this figure to increase and settle in the 100 to 120 sq ft per person range.

Image Source


Also read: Developers to build housing parks in place of IT parks in Chennai

Also read: Work from home culture may damage workspace market: Ind-Ra

The ongoing expansion and innovation of the technology sector in the Asia-Pacific (APAC) region, including India to boost office leasing demand over the next five years. According to a report by property advisory Colliers, the key drivers of tech companies for the office leasing demand in the region accounting for 20% to 25% of demand for leased office space over the next five years. According to a Colliers report titled growth engines of innovation, the top five tech centers in APAC are Beijing, Shanghai, Shenzhen, Bengaluru, and Singapore. These five tech centers in APAC are offering infrastructure and talent for occupiers, and are well-positioned to deliver future growth and investment opportunities for owners. Seoul and Hong Kong are developing strengths in specific areas of technology such as fintech, while Hyderabad and Sydney are emerging as new tech centers. According to the report, Yangpu in Shanghai, Whitefield, and North Bengaluru in Bengaluru, Hitec City in Hyderabad, and Sydney’s CBD South are among the upcoming sub-markets. In the past year, global tech companies have been vocal about adopting work-from-home and a hybrid workplace model going forward, leading to the overall risk in leasing volumes of office space across the globe. The information technology (IT) companies have been expanding their workforces which has led to the assumption that they may also need adequate office space to accommodate their employees. Space per person has dropped from more than 150 sq ft in the early days to around 70 to 80 sq ft, with captive centers and the Business Process Outsourcing (BPO) sector dominating the office landscape in India. Colliers said that the sector is expecting this figure to increase and settle in the 100 to 120 sq ft per person range. Image Source Also read: Developers to build housing parks in place of IT parks in Chennai Also read: Work from home culture may damage workspace market: Ind-Ra

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