New Delhi

India alone accounted for over 70 per cent of Asia's total office leasing during H1 2026, driving prime commercial real estate activity across the region, according to the Asia Pacific Office Market Insights H1 2026 report by Colliers.

Across the 11 key Asia Pacific markets tracked, total office leasing reached 4.6 million sq m (49.5 million sq ft) in the first half of the year, marking a 3 per cent year-on-year increase. Demand was anchored primarily by Grade A space absorption in India, Mainland China, and Japan, which collectively drove over 95 per cent of the total regional uptake. Strong growth was also observed in Hong Kong and Taiwan.

As per the report, new supply across the 11 APAC markets contracted by 37 per cent year-on-year to 3 million sq m (32.3 million sq ft), with completions heavily concentrated in India and Mainland China, which together represented more than 80 per cent of regional supply.

Arpit Mehrotra, Managing Director, Office Services, Colliers India, said, "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."

Mehrotra added, "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."

According to the Colliers report, the broader Asia Pacific region continues to outperform global peers despite moderating GDP growth and central banks maintaining caution due to inflation.

Vimal Nadar, National Director and Head of Research, Colliers India, said, "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."

Nadar said, "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."

Mike Davis, Managing Director, Occupier Services, Asia Pacific at Colliers, noted that the regional market enters the second half of 2026 with momentum.

Davis said, "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."

Davis added, "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."

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The report noted that sustained demand alongside constrained new supply is likely to keep regional vacancy levels stable and drive rental growth across high-activity markets through the remainder of 2026.