India, China, and Japan Lead Asia's Office Leasing Boom in H1 2025
A new report by Colliers reveals that India, Mainland China, and Japan collectively accounted for over 90% of office leasing demand in the Asia-Pacific region during the first half of 2025. The robust growth was driven by favorable economic conditions and a shift towards sustainable and flexible workspaces.
Office LeasingReal EstateAsiapacificEconomic PoliciesSustainable WorkspacesReal EstateAug 21, 2025
The growth was attributed to companies recalibrating their workplace strategies amid relatively lower inflation, easing interest rates, and supportive economic policies. This positive trend is expected to continue into the second half of the year, although the steady flow of new supply may keep vacancy rates elevated.
Singapore led the demand surge with a twelvefold year-on-year increase in office leasing volumes. The Philippines and Japan also saw robust growth, with increases of 56% and 55%, respectively. India, China, and Japan continued to anchor the market, with India alone accounting for over 70% of leasing activity and 48% of new supply in H1 2025.
Vimal Nadar, National Director & Head of Research at Colliers India, noted that India leased 3.13 million square metres (33.7 million square feet) of office space during the first half of the year across its top seven cities. Domestic firms accounted for 46% of the total demand, highlighting the strong local market dynamics.
The region also experienced a sharp rise in new supply, with total office space supply surging 45.4% year-on-year to 4.8 million square metres (51.7 million square feet). Australia, New Zealand, and Japan each recorded supply growth of more than 80% on an annual basis. Mainland China, India, and Singapore accounted for about 80% of the total new supply in the region.
Colliers highlighted a structural shift towards prime Grade A assets, as occupiers increasingly opt for sustainable and flexible workspaces that align with their long-term goals. Arpit Mehrotra, Managing Director of Office Services at Colliers India, emphasized the resilience of the APAC office market, noting that supportive growth policies and sustained occupier momentum position the region for a strong performance in the second half of 2025.
Mike Davis, Managing Director of Occupier Services for Colliers Asia Pacific, added that as flexibility and sustainability priorities take center stage, organizations are gravitating towards prime Grade A assets that reflect their values and future ambitions. This flight to quality is reshaping the region’s office landscape, and the momentum is expected to build through H2 2025 and beyond.
Looking ahead, Colliers expects leasing demand to remain strong in the second half of the year. However, the steady flow of new supply may keep vacancy rates elevated. Rental growth is likely in select high-performing markets, particularly where demand for green-certified and premium Grade A office assets continues to rise.
Frequently Asked Questions
Which countries are leading the office leasing demand in Asia-Pacific?
India, Mainland China, and Japan are leading the office leasing demand in Asia-Pacific, collectively accounting for over 90% of the demand in the first half of 2025.
What factors are driving the growth in office leasing activity?
The growth in office leasing activity is driven by companies recalibrating their workplace strategies amid relatively lower inflation, easing interest rates, and supportive economic policies.
Which city recorded the sharpest rise in office demand?
Singapore recorded the sharpest rise in office demand, with leasing volumes rising twelvefold year-on-year.
What is the trend in new office supply in the region?
The region experienced a sharp rise in new office supply, with total office space supply surging 45.4% year-on-year to 4.8 million square metres.
What is the outlook for office leasing in the second half of 2025?
Colliers expects leasing demand to remain strong in the second half of 2025, although the steady flow of new supply may keep vacancy rates elevated. Rental growth is likely in select high-performing markets, particularly where demand for green-certified and premium Grade A office assets continues to rise.
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