The Asia Pacific office leasing market in the first half of 2025 was dominated by India, Mainland China, and Japan, accounting for over 90% of total demand. India emerged as a standout market with strong leasing activity, new supply growth, and a shift toward premium, sustainable office spaces.
Major Markets Lead Leasing and Supply
India, Mainland China, and Japan collectively drove more than 90% of office leasing demand across the Asia Pacific in H1 2025. India accounted for 70% of total leasing and 48% of new supply, supported by expanding occupiers, GCC activity, and a diverse demand base. Domestic demand contributed 46% of leasing in India’s top seven cities.
Surge in New Office Supply
New office supply jumped 45.4% year-on-year to 4.8 million square meters (51.7 million square feet), driven largely by Mainland China, India, and Singapore, which made up 80% of new inventory. Australia, New Zealand, and Japan saw particularly strong growth, with annual supply increases exceeding 80%.
Accelerating Demand and Resilient Growth
Leasing activity increased by 9.6% across APAC markets, reaching 4.5 million square meters. The market showed resilience, aided by easing inflation, favourable interest rates, and positive GDP growth. Demand is expected to grow in H2 2025, though rising supply might affect vacancy rates. Rental growth is projected in select high-performing markets.
Shift Toward Premium Spaces and Sustainability
With growing focus on flexibility and sustainability, organisations are gravitating toward prime Grade A offices that align with corporate values and future goals. Demand for green-certified buildings supports a shift toward more resilient, sustainable, and future-ready office environments across the region.
FlexInsights Take
The Asia Pacific office market’s strong performance reflects fundamental economic factors and evolving occupier priorities. India’s outsized role indicates its growing prominence as a global commercial hub. Continued investor interest and demand for premium, sustainable workspaces are set to shape the region’s real estate trajectory well beyond 2025, reinforcing a shift toward quality, flexibility, and long-term resilience.
