Asia-Pacific office leasing rises 11% to 105.5 million sq. ft in 2025; India emerges key demand driver: Colliers

Total office leasing across 11 key markets in the Asia-Pacific region rose 11% year-on-year to 9.8 million square metres (105.5 million square feet) in 2025, driven by strong demand for Grade A office space in major markets such as India, Mainland China and Japan, according to the Asia Pacific Office Market Insights February 2026 report by Colliers. 

Demand growth in 2025 was particularly strong in markets such as the Philippines, New Zealand, and Hong Kong, albeit from lower bases, reflecting improving business confidence and renewed expansion activity. 

Supply rises alongside demand 

New office supply across the 11 markets also increased during the year, rising 19% year-on-year to 9.6 million square metres (103.3 million square feet). Eight of the 11 markets recorded an increase in supply, with India, Mainland China, and Singapore accounting for nearly 82% of the new supply added in 2025. 

Looking ahead, both demand and supply are expected to remain strong in the first half of 2026, supported by occupier expansion and growing preference for high-quality, future-ready office spaces. However, as vacancy tightens in prime locations and supply remains uneven, occupiers are likely to become more selective and competitive in their real estate decisions. 

“Office demand across key APAC markets continues to strengthen despite ongoing geopolitical frictions, with second-half 2025 leasing reaching 5.3 million square metres (57 million square feet), up 19% compared to the first half,” said Arpit Mehrotra, Managing Director, Office Services at Colliers India. 

He added that strong domestic growth in major economies, controlled inflation and a more accommodative interest-rate environment have supported the region’s office sector. 

India leads APAC office demand 

According to the report, India continued to be the key growth engine for the APAC office market. The country accounted for nearly 68% of total leasing and 55% of new supply across the top 11 markets in 2025, while also recording the strongest growth in office investments during the year. 

“India continues to drive the APAC office market, firmly establishing itself as a dominant demand centre and key investment destination,” said Vimal Nadar, National Director and Head of Research at Colliers India. 

He noted that steady economic growth, a strong occupier base and expanding Global Capability Centres (GCCs) are expected to sustain the country’s office market momentum in the coming years. 

Shift towards strategic space decisions 

The report also highlighted that the region’s office markets are entering a new phase in 2026, where strategic decision-making rather than scale will drive growth. 

“This year we see office market momentum across Asia-Pacific holding firm. With competition increasing for prime assets and vacancy tightening in key markets, organisations are becoming more deliberate and strategic about how, where and when they secure space,” said Mike Davis, Managing Director of Occupier Services, Asia-Pacific at Colliers. Companies are increasingly recalibrating their real estate portfolios, making fewer but more strategic moves when it comes to office space, he added.