India, Mainland China, and Japan drive 90pc of Asia’s office leasing demand in H1 2025: Colliers

THEBUSINESSBYTES BUREAU

BENGALURU, AUGUST 21, 2025

Office leasing activity across Asia Pacific’s key markets surged in the first half of 2025, with India, Mainland China, and Japan accounting for over 90% of total demand, according to Colliers’ latest Asia Pacific Office Market Insights H1 2025 report.

Leasing volumes across 11 monitored markets – including Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, and Taiwan – touched 4.5 million square metres (48.4 million square feet) in H1 2025, marking a 9.6% year-on-year increase. The rise reflects a broader recalibration of workplace strategies as corporates adapt to evolving business models.

Singapore led the momentum, posting a twelvefold jump in leasing volumes, while the Philippines and Japan recorded strong annual growth of 56% and 55% respectively. Despite this, India, Mainland China, and Japan remained the anchor markets, driving the bulk of regional office demand.

On the supply side, new completions grew even faster, rising 45.4% year-on-year to 4.8 million square metres (51.7 million square feet). Eight out of the 11 tracked markets witnessed an uptick in new supply, with Australia, New Zealand, and Japan seeing increases of more than 80% each. Mainland China, India, and Singapore together contributed close to 80% of the new supply during the period.

“The APAC office market continues to demonstrate resilience, with both demand and supply strengthening in H1 2025 despite global volatilities,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. “Supportive growth policies, easing interest rates, lower inflation, and robust GDP growth across key markets provide a strong foundation for continued momentum into H2 2025.”

India, in particular, emerged as the region’s growth engine, capturing over 70% of leasing and 48% of new supply in H1 2025. Demand for Grade A office spaces was driven by occupier expansion, sustained global capability centre (GCC) activity, and a diversifying demand base. Domestic firms contributed significantly, accounting for 46% of the total 3.13 million square metres (33.7 million square feet) leased across the top seven Indian cities.

“India continues to stand out as one of the most dynamic office markets in the APAC region,” said Vimal Nadar, National Director & Head of Research, Colliers India. “A strong supply pipeline, healthy occupier momentum, and improving macroeconomic indicators ensure a positive outlook for the remainder of the year.

The report also highlights a structural shift toward prime, sustainable Grade A assets as occupiers prioritise flexibility, employee well-being, and ESG compliance.

“This flight to quality is reshaping the regional office landscape, and the momentum is expected to accelerate through H2 2025 and beyond,” said Mike Davis, Managing Director, Occupier Services, Asia Pacific, Colliers.

While continued supply additions may put pressure on vacancy rates, Colliers expects rental growth in select high-performing markets. Investor interest in green-certified buildings is also set to remain strong, reinforcing the region’s transition to a more resilient and future-ready office ecosystem.