India's Office Market Emerges As Undisputed Growth Engine In Asia Pacific

(MENAFN- IANS) New Delhi, Sep 29 (IANS) India's office market has emerged as the undisputed growth engine of the Asia Pacific region, accounting for 44 per cent of net new supply and a commanding 61 per cent of total net absorption in the April-June period this year (Q2 2025) -- far ahead of regional peers, including the Chinese mainland and Southeast Asia, a report said on Monday.

The Indian market has consistently led in both net new supply and net absorption over the past decade.

"In Q2 2020, India contributed 26 per cent of net new supply and 30 per cent of net absorption, while in Q2 2015, those figures stood at 32 per cent and 35 per cent, respectively, according to Cushman and Wakefield's latest report.

Over the decade, India has steadily expanded its share of regional office activity, transforming from a major contributor to the dominant force in APAC's commercial real estate landscape.

According to the report, this momentum highlights the country's strong growth trajectory and its resilience in sustaining demand despite global headwinds.

“India's office sector is no longer just rebounding - it's evolving into a structural growth story. From contributing a third of regional activity in 2015 to becoming APAC's dominant force in 2025, India's momentum reflects deep occupier demand and developer confidence," said Anshul Jain, Chief Executive – India, SEA and APAC Office and Retail, at Cushman and Wakefield.

This sustained momentum, backed by global capability centres (GCCs), start-ups and manufacturing, reflects robust long-term fundamentals and a clear flight to quality, Jain added.

According to the report, India's leadership in regional office demand has been underpinned by strong sectoral activity.

Over the past five years (2020–2025), the IT/BPM, engineering and manufacturing, and BFSI sectors have been the key office demand drivers in the country, together accounting for a significant share of leasing activity.

IT/BPM sector led with 104.9 million square feet (30 per cent), followed by engineering and manufacturing and BFSI accounting for 57.3 million square feet (MSF) (16.3 per cent) and 56.8 MSF (16 per cent), respectively, the report noted.

Additionally, the nation has firmly established itself as a global hub for digital innovation and engineering research and design, powered by a skilled tech talent pool.

"Today, India is home to approximately 50 per cent of the world's Global Capability Centres (GCCs), which account for around 30 per cent of gross leasing volume," the report highlighted.

Notably, more than 90 per cent of this market action is concentrated around the top 6 cities – Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai and Pune. Bengaluru alone absorbs more office space in one year than many European cities do in five, according to the report.

These cities have now become the gateway cities for global multinationals to station their Global Capability Centres (GCCs) or offshore captive centres.

-- IANS

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