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Office leasing activity across Asia-Pacific (APAC) markets gained momentum in the first half of 2025, with India, Mainland China and Japan together contributing more than 90% of the demand, according to a new report by real estate consultancy Colliers.
India, China, Japan Dominate Asia's Office Leasing, Accounting For 90% Of Demand In H1 2025: Colliers
Office leasing activity across Asia-Pacific (APAC) markets gained momentum in the first half of 2025, with India, Mainland China and Japan together contributing more than 90% of the demand, according to a new report by real estate consultancy Colliers.
The report, titled ‘Asia Pacific Office Market Insights H1 2025', showed that the leasing activity across 11 key markets rose 9.6% year-on-year to 4.5 million square metres (48.4 million square feet) during the January-June period. The growth was attributed to companies recalibrating workplace strategies amid relatively lower inflation, easing interest rates and supportive economic policies.
Singapore Leads Demand Surge
Singapore recorded the sharpest rise in office demand, with leasing volumes rising twelvefold year-on-year. The Philippines and Japan also saw robust growth, posting increases of 56% and 55%, respectively.
Meanwhile, India, China and Japan continued to anchor the market. “With over 70% share in leasing and 48% of new supply in H1 2025, 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.
He added that India saw 3.13 million square metres (33.7 million square feet) of office space leased during the first half of the year across its top seven cities, with domestic firms accounting for 46% of the total demand.
Supply Outpaces Demand
The region also witnessed a sharp rise in new supply. Total office space supply across APAC markets surged 45.4% year-on-year to 4.8 million square metres (51.7 million square feet), outstripping demand in most markets. Australia, New Zealand and Japan each recorded supply growth of more than 80% on an annual basis, according to the report.
Mainland China, India and Singapore accounted for about 80% of the total new supply in the region. Overall, eight out of the 11 tracked markets saw an annual increase in supply during the period, it added.
Flight To Quality Driving Growth
Colliers noted that the structural shift towards prime Grade A assets is reshaping the office market. Occupiers are increasingly opting for sustainable and flexible workspaces that align with their long-term goals.
“The APAC office market continues to display remarkable resilience, with both demand and supply strengthening in H1 2025 despite ongoing volatilities," said Arpit Mehrotra, Managing Director, Office Services, Colliers India. “Going forward, 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."
Mike Davis, Managing Director of Occupier Services for Colliers Asia Pacific, added, “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."
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Outlook
Colliers expects leasing demand to remain strong in the second half of the year, though the steady flow of new supply may keep vacancy rates elevated. Rental growth is likely in select high-performing markets, particularly where demand for green-certified and premium Grade A office assets continues to rise.
Source: News18
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