India Surges as Asia-Pacific's Leading Office Real Estate Market with Robust Leasing Sentiment
India's commercial real estate market demonstrates remarkable resilience across office, retail, and industrial sectors, surpassing other Asia-Pacific markets. Fueled by strong occupier confidence, tech sector demand, and GCC investments, India's office market sentiment leads the region.
India Commercial Real EstateAsiapacific Office MarketOffice Leasing IndiaRetail Sector Growth IndiaIndustrial Logistics IndiaReal Estate NewsJun 23, 2025
The report highlights that rising occupier confidence, robust demand from technology and financial services, and continued investment by Global Capability Centres (GCCs), India’s office market is showing the highest sentiment levels across APAC. The Office Market Sentiment Index for India surged past the 70% threshold between September 2024 and June 2025—marking the highest score among all regional markets. This trend is backed by consistent leasing activity and stable rental growth in key metros.
CBRE’s India Office Figures report for Q1 2025 revealed that gross office leasing rose by 5% year-on-year, reaching 18 million square feet across nine cities between January and March 2025. Bengaluru, Hyderabad, Delhi-NCR, and Mumbai continued to dominate office demand, with select Tier 2 cities also seeing a notable uptick in leasing activity. While renewals remain the dominant driver, expansion-led leasing by IT and GCC occupiers remains strong in India and Japan, in contrast to the tapering seen in Korea and Singapore.
India’s retail sector also displayed resilience despite a slight moderation in leasing volumes. According to the CBRE survey, retailers in India remain optimistic and are strategically expanding into high-footfall, high-yield locations within major metros. This is in contrast to other APAC markets, where many retailers are consolidating and adopting cautious expansion strategies. In India, there is still no evidence of widespread store closures, suggesting continued confidence in long-term retail growth.
Importantly, India is the only market across Asia-Pacific where sentiment in all three core sectors—office, retail, and industrial & logistics—remains above the neutral 50% line. This underscores the country’s broad-based real estate resilience and growing stature as a strategic business destination. Even as some markets report a drop in enquiry levels, India continues to see healthy activity from sectors such as IT, BFSI, and GCCs.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, noted that India’s diversified occupier base, tech-driven growth, and long-term fundamentals are key to its sustained momentum. “India’s consistent performance across office, retail, and industrial sectors positions it as a key pillar of stability in the Asia-Pacific real estate landscape,” he said. “As global occupiers reassess their regional strategies amidst economic uncertainty, India offers a compelling proposition with its resilient demand, expanding infrastructure, and landlord-favourable dynamics.”
Ada Choi, Head of Research for APAC at CBRE, added that India is on a distinctive growth path compared to many of its peers still adjusting to post-pandemic trends. “India’s commercial markets, particularly offices, show strength in demand and rental stability. This positions the country for continued expansion, especially as global enterprises diversify their APAC portfolios.”
The CBRE Asia Pacific Market Sentiment Survey was conducted between May 20 and June 4, 2025, and captured 517 responses from CBRE leasing professionals across the region. The findings position India as a standout performer and reinforce its growing role as a central hub in the evolving APAC commercial real estate landscape.
Frequently Asked Questions
What is the Office Market Sentiment Index (OMSI) and how is it calculated?
The Office Market Sentiment Index (OMSI) is a metric that measures the confidence and sentiment of the office real estate market. It is calculated based on various factors such as leasing activity, rental growth, and occupier confidence. The index is typically derived from surveys of real estate professionals and market participants.
Which cities in India are leading in office leasing activity?
Bengaluru, Hyderabad, Delhi-NCR, and Mumbai are the leading cities in office leasing activity in India. These cities have seen significant demand from IT and Global Capability Centres (GCCs).
How has the retail sector in India performed compared to other APAC markets?
India’s retail sector has shown resilience and optimism, with retailers expanding into high-footfall locations in major metros. Unlike other APAC markets where retailers are consolidating, India has not seen widespread store closures, indicating continued confidence in long-term retail growth.
What factors contribute to India's strong performance in the commercial real estate market?
Key factors contributing to India's strong performance include a diversified occupier base, tech-driven growth, strong demand from IT and financial services, and continued investment by Global Capability Centres (GCCs). Additionally, India's expanding infrastructure and landlord-favourable dynamics are crucial.
What is the significance of the CBRE Asia Pacific Market Sentiment Survey?
The CBRE Asia Pacific Market Sentiment Survey provides insights into the real estate market sentiment across the APAC region. Conducted among real estate professionals, it helps identify trends, challenges, and opportunities in the commercial real estate sector, positioning India as a standout performer in the region.
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