India Leads APAC Office Market, With Highest Net New Supply, Absorption in Past Decade

Gurugram, September 29, 2025: India’s office market has emerged as the undisputed growth engine of the Asia Pacific region, consistently leading in both net new supply and net absorption over the past decade. According to Cushman & Wakefield’s latest report, Asia Pacific Office Demand – Navigating Expansionary Markets, India accounted for 44 per cent of net new supply and a commanding 61 per cent of total net absorption in Q2 2025- far ahead of regional peers including the Chinese mainland and Southeast Asia. This marks a significant rise from previous years. In Q2 2020, India contributed 26 per cent of net new supply and 30 per cent of net absorption while in Q2 2015, those figures stood at 32 per cent and 35 per cent, respectively, according to the report.

Over the decade, India has steadily expanded its share of regional office activity, transforming from a major contributor to the dominant force in APAC’s commercial real estate landscape. This momentum highlights the country’s strong growth trajectory and its resilience in sustaining demand despite global headwinds.

Anshul Jain, Chief Executive – India, SEA & APAC Office and Retail, at Cushman & Wakefield said, “India’s office sector is no longer just rebounding — it’s evolving into a structural growth story. From contributing a third of regional activity in 2015 to becoming APAC’s dominant force in 2025, India’s momentum reflects deep occupier demand and developer confidence. This sustained momentum, backed by GCCs, start-ups and manufacturing, reflects robust long-term fundamentals and a clear flight to quality.”

India’s leadership in regional office demand has been underpinned by strong sectoral activity. Over the past five years (2020–2025), the IT/BPM, engineering & manufacturing, and BFSI sectors have been the key office demand drivers in the country, together accounting for a significant share of leasing activity. IT/BPM sector led with 104.9 million square feet (30 per cent), followed by engineering & manufacturing and BFSI accounting for 57.3 MSF (16.3 per cent) and 56.8 MSF (16 per cent), respectively.

India has firmly established itself as a global hub for digital innovation and engineering R&D, powered by skilled tech talent pool. Today, India is home to approximately 50 per cent of the world’s Global Capability Centres (GCCs), which account for around 30 per cent of gross leasing volume. Notably, more than 90 per cent of this market action is concentrated around the top 6 cities – Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai and Pune. Bengaluru alone absorbs more office space in one year than many European cities do in five, according to the report. These cities have now become the gateway cities for global multinationals to station their Global Capability Centres (GCCs) or offshore captive centres.

This momentum is reinforced by occupier preferences shifting decisively toward Grade A+ office spaces which which command 5–10 per cent rental premiums and enjoy 3–6 per cent lower vacancy rates compared to standard Grade A stock. Strong competition for these assets is driving pre-commitment activity, with tenants securing space earlier in the development cycle to ensure alignment with ESG and tech requirements.

On the evolving workplace strategies, Jain said, “We’re seeing a fundamental shift in how occupiers approach office space in Asia Pacific. It’s no longer just about expansion. The office has become a platform for brand expression, cultural alignment, and performance. From India’s consistent demand to SEA’s evolving industry mix and China’s innovation-led growth, companies are prioritizing spaces that foster talent, support ESG commitments, and enable long-term resilience.”

Looking ahead, the demand for office space leasing continues to show resilience, even amid global trade tensions and geopolitical uncertainty. A growing share of pre-commitments in Gross Leasing Volume (GLV) suggests tenants will need to take an increasingly forward-looking view of the market if they wish to secure the highest quality space.