India, Mainland China and Japan Dominate Asia’s Office Leasing, Driving 90% of Demand in H1 2025

Office leasing across 11 key markets reached 4.5 million square metres (48.4 million square feet)in the first half of the year – a 9.6% year-on-year increase – reflecting a broader recalibration of workplace strategies. Markets monitored included Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, Philippines, Singapore, South Korea and Taiwan, said Colliers’ new report, Asia Pacific Office Market Insight H1 2025.

Singapore, the Philippines and Japan saw notablegrowth in demand in H1 2025 on an annual basis, with Singapore recording an impressive twelvefold increase in leasing volumes. The Philippines and Japanrecorded robust year-on-year gains of 56% and 55% respectively. Meanwhile, India, Mainland China and Japan continued to anchor regional activity, collectively accounting for more than 90% of total office demand, it mentioned.

According to the report, new supply also gained traction, rising 45.4% year-on-year to 4.8 million square metres(51.7 million square feet) and outpacing demand in most markets. Australia, New Zealand and Japan saw particularly strong growth, each registering annual increases exceeding 80%. Overall, 8 out of 11 APAC markets saw an increase in new supply during H1 2025. Mainland China, India and Singapore together accounted forapproximately 80% of the new supplyduring the period.


"The APAC office market continues to display remarkable resilience, with both demand and supply strengthening in H1 2025 despite ongoingvolatilities. Leasing activity across the 11 APAC markets grew 9.6% to 4.5 million square metres(48.4 million square feet) in H1 2025, while new supply surged 45.4% to 4.8 million square metres (51.7 million squarefeet), underpinned by relatively lower inflation levels, easing interest rates, and a positive GDP growth across key markets. Goingforward, 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,"said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

“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.The robust demandfor Grade A office space in India is driven by a combination of factors,including continued occupier expansion, sustained GCC activityand a diversifying demand base. Domestic demand, in particular,is holding up well, accounting for 46% of the total leasing of 3.13 million square metres(33.7 million square feet)during H1 2025across the top 7 cities of the country. Backed by these fundamental demand drivers, a strong supply pipeline, and marked improvement in macroeconomic indicators, the office market outlook for India remains positive.” saidVimal Nadar, National Director & Head of Research, Colliers India.

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” said Mike Davis, Colliers’ Managing Director of Occupier Services, Asia Pacific.

Demand is expected to continue its upward trajectory in the second half of the year, although ongoing supply additions may exert pressure on vacancy rates. Nonetheless, rental growth is anticipated in select high-performing markets.

The structural shift toward premium Grade A properties is set to define the next phase of growth, as occupiers seek spaces that support evolving business needs and sustainability goals. Investor interest in green-certified buildings will remain strong, reinforcing the region’s transition to a more resilient and future-ready office landscape.