APAC Office Supply to Peak This Year; India Likely to Lead With Around 40% Share

New Delhi, February 23, 2026: The supply of Grade-A office spaces in the Asia Pacific region is expected to hit a new peak of 61.3 million square feet (MSF) in calendar year 2026, rising 10.8 per cent from 55.3 MSF in 2025, on the net floor area (NFA) basis, and India alone is likely to account for ~40 per cent of it, according to CBRE’s 2026 Asia Pacific Real Estate Market Outlook.

The report said that along with mainland China, the country is expected to contribute over 75 per cent of the total supply in 2026.

“India’s growing dominance in the APAC office supply landscape reflects the structural depth of the demand drivers in the country,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “Even amid global macroeconomic recalibration, occupiers viewing India as a scalable, talent-rich destination for multi-functional growth.”

“As we move into a cycle where income growth is at the centre of real estate decision-making, the ability for occupiers and investors to recalibrate and innovate will be critical,” said Ada Choi, Head of Research, Asia Pacific for CBRE. “Occupiers are responding to softer economic growth by sharpening their space requirements and prioritising high-quality buildings in core locations, while investors are focusing on income resilience and portfolio optimisation. It will also be important to capture emerging opportunities in sectors such as data centres and living.”

The report added that despite an all-time high supply, most developed markets will remain supply-constrained in office sector. In 2026, the expansion and new set-up activity is expected to increase in most countries, with premium offices being keenly sought after, partly fueled by corporates enforcing stricter office attendance mandates.

Moreover, CBRE’s recently released ‘2026 Asia Pacific Investor Intentions Survey’ highlighted that office assets have overtaken industrial and logistics as the most-preferred sector for investment in the region, for the first time in six years. As a result, rents of Grade A offices in the Asia Pacific region are expected to remain on an upward track in 2026. The report said that Tokyo, India’s tier-1 markets, and Australian cities will continue to lead growth, albeit at a slower pace than last year.

In 2025, Mumbai’s BKC led the rental growth in the APAC region, rising 23.1 per cent year-on-year. It was followed by Tokyo Grade A offices at 13 per cent YoY and Delhi-NCR (core Gurugram) at 10.1 per cent.

In 2026, while Mumbai’s BKC will sustain double-digit rental gains driven by the tight availability of new premium office space and strong expansionary demand from flexible space operators, the growth is likely to moderate to 12.5 per cent. Tokyo would continue with double-digit percentage growth in 2026, at 13.1 per cent, on the back of low vacancy and occupiers’ willingness to pay a premium for high quality prime office space to attract and retain employees.

In China’s tier I markets, the rents have fallen by more than 40 per cent since the onset of the downward cycle. This year, the rate of decline is expected to narrow, partly supported by stronger office requirements resulting from domestic demand – fuelled by AI and tech development.