India drives APAC office demand in H1 2026, accounts for over 70% of leasing: Report
Asia Pacific’s office market recorded leasing activity of 4.6 million square metres (49.5 million square feet) in the first half of 2026, marking a 3 per cent year-on-year (YoY) increase, according to Colliers’ Asia Pacific Office Market Insights H1 2026 report.
India emerged as the region’s key demand driver, accounting for more than 70 per cent of total office leasing during H1 2026. India, Mainland China and Japan collectively contributed more than 95 per cent of the region’s office demand during the period, the report noted.
The growth was supported by robust Grade A office uptake across major markets, with Hong Kong and Taiwan recording some of the strongest improvements in demand amid improving business confidence and renewed expansion activity.
India anchors APAC office demand in H1 2026
India accounted for over two-thirds of both office demand and supply across the 11 key Asia Pacific markets during H1 2026, according to Colliers.
“India continues to anchor leasing volumes in the APAC office market, underpinned by strong demand fundamentals, including expansion of global capability centres in the country,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
He added that skilled talent availability and cost arbitrage are expected to support robust absorption despite geopolitical uncertainty, further strengthening India’s position as a preferred office market in Asia Pacific.
APAC office supply falls 37%
While office demand increased, new supply across the 11 APAC markets declined 37 per cent YoY to 3.0 million sq m (32.3 million sq ft) in H1 2026.
New completions were heavily concentrated in India and Mainland China, which together accounted for more than 80 per cent of the region’s new supply.
The combination of firm demand and constrained supply is expected to put further pressure on vacancy levels and support rental growth in several key APAC markets during the second half of 2026.
High-quality offices remain in demand
Vimal Nadar, National Director & Head of Research, Colliers India, said office demand across major APAC markets remained resilient in H1 2026 despite moderating GDP growth and cautious monetary policy.
He said renewed expansion plans and a growing preference for high-quality, future-ready workplaces are expected to sustain office demand, with India likely to continue driving leasing volumes over the coming quarters.
"Looking ahead, renewed expansion plans and a growing preference for high-quality, future-ready workplaces are expected to sustain office space demand in the APAC region, with India continuing to drive leasing volumes over the next few quarters,” said Nadar.
Mike Davis, Managing Director, Occupier Services, Asia Pacific, Colliers, said demand is increasingly concentrating in best-in-class office assets as occupiers focus on attracting talent, improving productivity and supporting business growth.
“The APAC office market is entering the second half of 2026 with growing momentum. As occupiers double down on high-quality workplaces to attract talent, drive productivity and support business growth, regional demand is increasingly concentrating in best-in-class assets," Davis said.
APAC Office Market Outlook H2 2026
Colliers expects office market activity across Asia Pacific to remain strong in H2 2026, supported by continued leasing momentum and business expansion.
The region’s resilient growth outlook and expected stability in interest rates are likely to support business confidence and investment. However, geopolitical risks and trade uncertainties remain key challenges.
With demand expected to remain healthy and high-quality office space continuing to attract occupiers, vacancy levels are likely to remain stable, while rents could rise in high-activity markets.
