India, Mainland China, Japan Dominate Asia’s Office Leasing, Driving 90% of Demand in H1 2025: Colliers

Bengaluru, August 21, 2025: Leasing activity across 11 key markets reached 48.4 mn sq ft (MSF) in the first half of the year, a 9.6 per cent YoY increase, according to Colliers’ new report ‘Asia Pacific Office Market Insights H1 2025’, reflecting a broader recalibration of workplace strategies. Markets monitored included Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, Philippines, Singapore, South Korea and Taiwan.

Singapore, the Philippines and Japan saw notable growth in demand in H1 2025 on an annual basis with Singapore recording an impressive 12-fold increase in leasing volumes. The Philippines and Japan recorded robust YoY gains of 56 per cent and 55 per cent, respectively. Meanwhile, India, Mainland China and Japan continued to anchor regional activity, collectively accounting for more than 90 per cent of total office demand.

New supply also gained traction, rising 45.4 per cent YoY to 51.7 MSF, and outpacing demand in most markets. Australia, New Zealand and Japan saw particularly strong growth, each registering annual increases exceeding 80 per cent. Overall, 8 out of 11 APAC markets saw an increase in new supply during H1 2025. Mainland China, India and Singapore together accounted for approximately 80 per cent of the new supply during the period.

“The APAC office market continues to display remarkable resilience, with both demand and supply strengthening in H1 2025 despite ongoing volatilities,” said Arpit Mehrotra, MD, Office Services, Colliers India.

“Leasing activity across the 11 APAC markets grew 9.6 per cent to 48.4 MSF in H1 2025 while new supply surged 45.4 per cent to 51.7 MSF underpinned by relatively lower inflation levels, easing interest rates, and a positive GDP growth across key markets.”

He added, “With supportive growth policies and sustained occupier momentum, both India and the wider APAC region are well placed for a strong performance in the second half of 2025.”

According to Vimal Nadar, National Director and Head of Research, Colliers India, “With over 70 per cent share in leasing and 48 per cent of new supply in H1 2025, India continues to stand out as one of the most dynamic office markets in the APAC region.”

He added, “The robust demand for Grade A office space in India is driven by a combination of factors, including continued occupier expansion, sustained GCC activity and a diversifying demand base.”

Domestic demand, in particular, is holding up well, accounting for 46 per cent of the total leasing of 33.7 MSF during H1 2025 across the top seven cities. “Backed by these fundamental demand drivers, a strong supply pipeline and marked improvement in macroeconomic indicators, the office market outlook for India remains positive.” 

Mike Davis, MD, Occupier Services, Asia-Pacific, Colliers, said, “As flexibility and sustainability priorities take centre stage, organisations are gravitating toward prime Grade A assets that reflect their values and future ambitions. This flight to quality is reshaping the region’s office landscape, and we expect this momentum to build through H2 2025 and beyond.”

Demand is expected to continue its upward trajectory in the second half of the year though the ongoing supply addition may exert pressure on vacancy rates. Nonetheless, rental growth is anticipated in select high-performing markets.

The structural shift toward premium Grade A properties is set to define the next phase of growth as occupiers seek spaces that support evolving business needs and sustainability goals. Investor interest in green-certified buildings will remain strong, reinforcing the region’s transition to a more resilient and future-ready office landscape.