India has emerged as a leader in Asia’s office real estate sector, accounting for a significant 70% share of new office space supply in the region. In Q3 alone, over 14.4 million square feet of new office spaces were completed, driven by robust demand across multiple occupier segments. Despite this influx of supply, vacancy rates in India have remained stable at around 17%, reflecting a healthy balance between supply and demand.

“Competitive rentals and robust demand from diverse occupier segments will continue to strengthen the positioning of India’s office market in the APAC region,” commented Arpit Mehrotra, Managing Director of Office Services at Colliers India. With rental growth expected to vary across Indian cities, India’s office property market remains aligned with other competitive markets such as Australia, Japan, and New Zealand.

The Asia-Pacific region has seen office demand soar, with a 10.7% year-on-year growth in the third quarter. India, alongside New Zealand and Singapore, has seen the most significant uptick, with leasing growth exceeding 30%. This sustained demand for office spaces has positioned India as a major player in APAC’s commercial real estate, drawing attention from both local and international investors.

In 2024, India is poised to grow even more, with expectations for 54-64 million square feet of Grade A office space uptake. According to Vimal Nadar, Senior Director and Head of Research at Colliers India, “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.” As the demand for premium office spaces persists, India’s position in the APAC market is solidifying, especially within the Grade A segment.

On the supply side, significant project completions across Asia-Pacific will likely contribute to substantial supply growth over the next few quarters. This could stabilise overall rental rates as demand and supply dynamics balance. However, some markets may experience fluctuations due to local economic uncertainties.

With competitive rental rates and sustained growth in leasing activity, India’s office market is well-positioned to maintain its leading role in Asia. This momentum highlights India’s growth potential and underscores the country’s strategic importance in the Asia-Pacific real estate landscape. As demand for flexible and premium office spaces rises, India’s real estate sector will likely attract further investment and expansion opportunities in the coming years.