APAC Office Demand Rises 3% to 4.6 Million Sq M in H1 2026; India Accounts for Over Two-Thirds

Mumbai: Office leasing across 11 key Asia Pacific markets increased 3% year-on-year to 4.6 million sq m (49.5 million sq ft) in the first half of 2026, with India accounting for more than 70% of the region’s total demand, according to Colliers’ Asia Pacific Office Market Insights H1 2026 report.

India, Mainland China and Japan together accounted for more than 95% of office leasing activity across the region during H1 2026. Demand growth was particularly strong in Hong Kong and Taiwan, reflecting improving business confidence and renewed expansion activity in these markets.

At the same time, the supply pipeline remained constrained. New office completions across the 11 markets declined 37% year-on-year to 3.0 million sq m (32.3 million sq ft). India and Mainland China accounted for more than 80% of the new supply added during the period.

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India Remains Key Driver of APAC Office Demand

India continued to anchor office leasing activity across the Asia Pacific region, supported by demand fundamentals including the expansion of global capability centers.

“India continues to anchor leasing volumes in the APAC office market, underpinned by strong demand fundamentals, including expansion of global capability centers in the country. In fact, India accounted for over two-thirds of the region’s demand and supply during H1 2026. Looking ahead, despite geopolitical uncertainty, skilled talent availability and cost arbitrage are likely to support robust absorption and further strengthen India’s position as a preferred office market in the Asia Pacific region,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

The combination of sustained occupier demand and limited new supply could further influence vacancy and rental trends across major Asia Pacific office markets in the second half of 2026.

High-Quality Workplaces Support Leasing Activity

Office demand across key APAC markets remained resilient despite moderating GDP growth, with leasing reaching 4.6 million sq m (49.5 million sq ft) during H1 2026.

“Office demand across key APAC markets remained resilient in H1 2026, with leasing activity reaching 4.6 million sq m (49.5 million sq ft). Despite moderating GDP growth, the region continues to outperform global peers. While elevated inflation levels have prompted central banks to maintain a cautious approach to monetary policy, sustained business confidence continues to underpin occupier demand and investment activity. 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 Vimal Nadar, National Director & Head of Research, Colliers India.

The report said Asia Pacific continues to outperform global peers and remains an important contributor to global economic expansion. A resilient growth outlook and likely stability in interest rates are expected to support business confidence and investment, although geopolitical risks and trade uncertainties remain important considerations.

Demand Concentrates in Best-in-Class Office Assets

The preference for high-quality office space is also becoming more pronounced across the region as occupiers seek workplaces that can support talent attraction, productivity and business expansion.

“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. Over the next few quarters, supply and demand are expected to remain healthy, supported by strong occupier activity and continued preference for high-quality office assets,” said Mike Davis, Colliers Managing Director, Occupier Services, Asia Pacific.

Overall, office market activity across Asia Pacific is expected to remain firm in H2 2026, supported by continued leasing momentum and business expansion.

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With demand continuing to keep pace with new supply, vacancy levels are likely to remain stable across several markets, while rents could move higher in locations experiencing stronger occupier activity.