The Asia Pacific office market is predicted to grow in 2025, with new Colliers’ data showing demand across top markets surging 10.7% year-on-year (y-o-y) in the third quarter of 2024.
Colliers’ Asia Pacific Office Market Insights Q3 2024 report found Asia Pacific Grade A office demand surged 10.7% in Q3 2024 (y-o-y) to 2.2 million sqm (23.7 million sq ft) as major markets across the region strengthened, signalling a potentially strong 2025.
The demand momentum was particularly strong in countries such as India, New Zealand, and Singapore, with annual growth in office leasing in these markets exceeding 30%.
At 1.61 million sqm (17.3 million sq ft), India particularly continued to lead APAC office leasing activity. Over 70% of the office demand in Q3 2024 came from India, distantly followed by China at 17%. Within India, more than half of the Grade A space uptake came from Bengaluru and Hyderabad. With over 1.34 million sqm (14.4 million sq ft) of new completions in Q3 2024, overall new supply in India too followed the demand trajectory, thus keeping vacancy levels rangebound at around 17%.
On the Asia Pacific supply side, significant project completions in major markets can result in significant supply growth in the next few quarters. Going forward, overall rentals are likely to remain rangebound, as demand-supply dynamics balance out each other, despite uncertainties in certain markets.
