India Emerges as Asia Pacific’s Office Powerhouse as Regional Leasing Hits Record Highs

Bengaluru, March 5, 2026: The Asia Pacific office market demonstrated remarkable resilience in 2025, with leasing activity surging 11% year-on-year to reach 9.8 million square metres (105.5 million square feet). According to the latest Asia Pacific Office Market Insights report from Colliers, India has firmly established itself as the region’s primary growth engine, accounting for a staggering 68% of total leasing activity across 11 key regional markets. This surge in demand was complemented by a 21% rise in institutional investments, which reached US$58.6 billion over the course of the year.

The regional growth was largely concentrated in India, Mainland China, and Japan, which together drove over 90% of the total demand. While these major economies anchored the market, smaller hubs including the Philippines, New Zealand, and Hong Kong also recorded multi-fold growth, signaling a broad recovery in business confidence. On the supply side, new office completions rose 19% to 9.6 million square metres, with India, Mainland China, and Singapore contributing the lion’s share of new Grade A inventory.

Industry experts attribute this momentum to a stabilizing macroeconomic environment and a shift toward high-quality workspaces. “Office demand across key APAC markets continues to strengthen despite ongoing geopolitical frictions, with H2 2025 leasing at 5.3 million square meters (57 million square feet), up 19% compared to H1 2025,” stated Arpit Mehrotra, Managing Director, Office Services, Colliers India. He noted that the fundamentals of the APAC economy remain stronger than most global regions, adding, “Vacancy levels are likely to tighten further, exerting upward pressure on rentals across key markets, including India.”

India’s specific dominance remains the headline story of the 2026 report, as the country continues to attract global occupiers and GCCs (Global Capability Centers). Vimal Nadar, National Director & Head of Research at Colliers India, highlighted that the country accounted for 55% of the region’s new supply in addition to its massive leasing share. “India continues to drive the APAC office market, firmly establishing itself as a dominant demand center and key location for investments,” Nadar said. He emphasized that sustained institutional interest is expected to “reinforce India’s position as a preferred destination for long-term office investments.”

As the market moves into the first half of 2026, the focus is expected to shift from sheer volume to strategic portfolio management. Colliers experts suggest that the next phase of the cycle will be defined by “where, why, and how” organizations occupy space rather than just the quantity of square footage. This trend reflects a more disciplined approach by corporations looking to secure “future-ready” assets in an increasingly competitive landscape.

Mike Davis, Managing Director of Occupier Services, Asia Pacific at Colliers, observed that businesses are currently recalibrating their long-term real estate needs. “This year we see office market momentum across Asia Pacific is holding firm. With competition increasing in prime assets and vacancy tightening in key markets, organisations are becoming more deliberate and strategic about how, where and when they secure space,” Davis said. He concluded by noting a distinct shift in corporate behavior: “Businesses are not simply returning to the office; they are recalibrating their portfolios. We are seeing companies make fewer moves, but better ones.”