Bengaluru
India continues to lead the Asia-Pacific (APAC) office market, accounting for over 70% of the total leasing demand during the July-September quarter, a report revealed on Friday.
India’s office leasing activity reached 17.3 million square feet, with Bengaluru and Hyderabad contributing to more than half of the demand for Grade A office spaces. According to Colliers India, the country’s strong leasing trend is further supported by over 14.4 million square feet of new office completions in the third quarter, keeping vacancy rates steady at about 17%.
“Although rental growth will vary across cities, India’s office market is on a positive trajectory, aligning with growth in other markets like Australia, Japan, and New Zealand. Competitive rental prices and strong demand across various sectors will continue to strengthen India’s position in the APAC office market,” said Arpit Mehrotra, Managing Director of Office Services at Colliers India.
The report predicts the APAC office market will grow in 2025, with office demand increasing by 10.7% year-on-year in the third quarter. India, New Zealand, and Singapore are particularly strong performers, with annual office leasing growth exceeding 30%.
India is expected to see an additional 54-64 million square feet of Grade A office space uptake in 2024, solidifying its role as a major player in the region’s commercial real estate sector. The report also suggests that while rental prices may remain stable, demand and supply dynamics will continue to balance each other out in the coming months.
