Asia Pacific Office Demand Rises 3% in First Half of 2026 as India Leads Region: Colliers
Bengaluru, August 24, 2026: Office space leasing across 11 key Asia Pacific markets rose 3% year-on-year to 4.6 million square meters (49.5 million square feet) in the first half of 2026, driven by strong uptake of Grade A office space, according to the Asia Pacific Office Market Insights H1 2026 report released by Colliers.
India, Mainland China, and Japan collectively accounted for over 95% of total regional demand during the six-month period. India led the region by generating over 70% of total leasing activity, while markets such as Hong Kong and Taiwan recorded the strongest growth rates in demand.
New completion of office space across the 11 regional markets declined by 37% year-on-year to 3.0 million square meters (32.3 million square feet) during H1 2026. The influx of new supply was concentrated primarily in India and Mainland China, which together represented more than 80% of total completions.
Evaluating India’s role in the regional performance, Arpit Mehrotra, Managing Director, Office Services, Colliers India, stated: “India continues to anchor leasing volumes in the APAC office market, underpinned by strong demand fundamentals, including expansion of global capability centers in the country. In fact, India accounted for over two-thirds of the region’s demand and supply during H1 2026. Looking ahead, despite geopolitical uncertainty, skilled talent availability and cost arbitrage are likely to support robust absorption and further strengthen India’s position as a preferred office market in the Asia Pacific region.”
The report highlighted that the Asia Pacific real estate market continues to outperform global peers despite moderating economic growth and elevated inflation that has led central banks to maintain cautious monetary stances.
Commenting on occupier sentiment and market trends, Vimal Nadar, National Director & Head of Research, Colliers India, said: “Office demand across key APAC markets remained resilient in H1 2026, with leasing activity reaching 4.6 million sq m (49.5 million sq ft). Despite moderating GDP growth, the region continues to outperform global peers. While elevated inflation levels have prompted central banks to maintain a cautious approach to monetary policy, sustained business confidence continues to underpin occupier demand and investment activity. Looking ahead, renewed expansion plans and a growing preference for high-quality, future-ready workplaces are expected to sustain office space demand in the APAC region, with India continuing to drive leasing volumes over the next few quarters.”
Colliers projects market activity to maintain momentum through the second half of 2026, supported by occupiers targeting premium space and continued business expansion.
Regarding the regional outlook for the remainder of the year, Mike Davis, Colliers Managing Director, Occupier Services, Asia Pacific, stated: “The APAC office market is entering the second half of 2026 with growing momentum. As occupiers double down on high-quality workplaces to attract talent, drive productivity and support business growth, regional demand is increasingly concentrating in best-in-class assets. Over the next few quarters, supply and demand are expected to remain healthy, supported by strong occupier activity and continued preference for high-quality office assets.”
