At 17.3 million square feet, India continued to lead the APAC office leasing activity. Within India, more than half of the Grade A space uptake came from Bengaluru and Hyderabad, according to a Colliers India report.

With over 14.4 million sq ft of new completions in Q3, overall new supply in India too followed the demand trajectory, thus keeping vacancy levels rangebound at around 17 per cent, the report added.

“Although the rental growth will vary across Indian cities, the overall rental property cycle aligns with select markets such as Australia, Japan, and New Zealand. Additionally, competitive rentals and robust demand from diverse occupier segments will continue to strengthen the positioning of India office market in the APAC region." said Arpit Mehrotra, Managing Director, Office services, Colliers India.

The Asia Pacific office market is predicted to grow in 2025, with new data showing demand across top markets surging 10.7 per cent (year-on-year in the third quarter.

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 per cent, according the report.

“Moreover, with continued traction in leasing activity, India can potentially witness 54-64 million sq ft of Grade A space uptake in 2024, reinforcing its position as a key player in APAC’s commercial real estate landscape.” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

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, said the report.