Asia Pacific Office Demand Soars By 10.7% As Occupiers Seek Quality Spaces: Colliers
India, New Zealand, and Singapore Lead Leasing Growth with Over 30 per cent Increase in Q3 2024
The Asia Pacific office market saw a robust rise in demand, with top markets experiencing a 10.7 per cent year-on-year increase in the third quarter of 2024, as reported by Colliers’ Asia Pacific Office Market Insights Q3 2024. The demand reached 2.2 million sqm (23.7 million sq ft), driven by occupiers' preference for premium, Grade A office spaces in key cities.
India, New Zealand, and Singapore spearheaded the region’s growth, each recording annual leasing gains of over 30 per cent.
India alone accounted for more than 70 per cent of APAC’s office demand in Q3, totaling 1.61 million sqm (17.3 million sq ft), with Bengaluru and Hyderabad as the primary contributors. With 1.34 million sqm (14.4 million sq ft) of new office completions in India, vacancy rates remained stable at around 17 per cent.
“Average rentals in major Indian office markets rose by up to 10 per cent year-on-year in Q3 2024, reflecting robust demand for premium spaces. The Indian office market is entering an expansion phase, supported by occupiers’ focus on quality facilities and green-certified spaces,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. He added that this trend aligns with markets like Australia, Japan, and New Zealand.
The report highlights a “flight to quality” trend across APAC, with occupiers increasingly preferring sustainable, ESG-compliant workspaces.
“With economic growth outlooks strong across APAC, demand for premium office spaces is likely to remain resilient, especially as companies seek best-in-class facilities,” noted Vimal Nadar, Senior Director & Head of Research, Colliers India.
Mike Davis, Managing Director of Occupier Services at Colliers APAC, commented, “The APAC office market is poised for sustained growth, driven by occupiers’ focus on adaptable, sustainable workspaces.”
With significant project completions anticipated in major markets, supply growth is expected in the coming quarters, potentially stabilising rental rates as demand and supply dynamics balance out.
