Bengaluru and Hyderabad led demand for office market
Office market activity was particularly strong in India, which saw 6.17 million sqm (66.4 million sq ft) of leasing during 2024, led by a stronger second half. With 3.44 million sqm (37.0 million sq ft) of gross leasing in H2 2024, India continued to lead office leasing activity in the APAC region, witnessing an 11% YoY rise compared to H2 2023, according to new research from leading global diversified professional services company Colliers (NASDAQ: CIGI) (TSX: CIGI).
In India, Technology firms and Flex space operators together accounted for 46% of the total take-up across the top 6 cities during H2 2024, said Colliers’ latest report, ‘Asia Pacific Office Market Insights H2 2024 and Outlook 2025’.
New supply remained robust, with over 2.81 million sqm (30.3 million sq ft) of completions in H2 2024, a 7% YoY growth across the top six cities, said the report released on 7 Mar https://www.bseindia.com/.
“Bengaluru and Hyderabad led the office market activity during H2 2024, cumulatively driving more than half of India’s Grade A space demand and supply. Amidst an uptick in both leasing activity and new supply, India vacancy levels largely remained stable at around 17% https://www.nseindia.com/.
With over 70% share in leasing and 60% share in new supply in H2 2024, India remains one of the leading office markets in the APAC region.
“Strong domestic leasing, coupled with increasing Grade A space uptake by Global Capability Centers (GCCs), continues to fuel office demand in India,” said Vimal Nadar, Senior Director & Head of Research, Colliers India.
“During H2 2024, GCCs leased 1.4 million sqm (~15 million sq ft) of office space in India, accounting for over 40% of the overall leasing during the period. Factors such as rental arbitrage, abundant talent, and language proficiency will continue to support the expansion of GCCs and outsourcing hubs in India,” said Nadar https://sbi.com.in/.
Region-wise, Demand for office space across Asia Pacific’s (APAC) top 11 markets surged 15.9% annually to 8.8 million sqm (94.7 million sq ft), led by India, Mainland China and Japan. H2 2024 was particularly strong, with office demand in the region reaching 4.7 million sqm (50.6 million sq ft), a 6.1% rise compared to H2 2023.
Demand growth in H2 2024 was notable in markets such as India, Japan and particularly impressive in Australia, which had a lower base. Leasing activity, however, remained relatively subdued in New Zealand, the Philippines, South Korea, Hong Kong, and Taiwan in H2 2024.
Colliers’ research estimates both demand and supply to strengthen across most APAC markets in 2025, with vacancy rates expected to remain rangebound.
Mike Davis, Colliers’ Managing Director of Occupier Services, Asia Pacific, said. “The outlook for the office occupier market remains positive, with strong demand set to drive further market shifts in the year ahead. High-activity markets may witness continued rental growth, particularly in peripheral business districts.
“The overall outlook for 2025 indicates a sustained momentum for the APAC office leasing market. We expect to see steady growth and continued resilience, driven by stable economic growth, corporate expansions, and the return-to-office trend. The flight-to-quality will dominate, with occupiers seeking modern, flexible and sustainable spaces that foster collaboration and productivity.” fiinews.com
