APAC Office Market Update

Leasing activity across several APAC markets remained resilient, despite escalating geopolitical tensions, economic headwinds, and rising operating costs. Led by key Indian cities—Bengaluru, Pune, and Hyderabad — office space absorption across the APAC office market increased by 16% YoY to nearly 29 Mn sq ft, despite registering a marginal quarterly decline of 1.8%.

Workspace demand in APAC markets was primarily driven by occupiers from technology & Al, BFSI, and professional services sectors, reflecting continued confidence in long-term business expansion plans.

Occupiers across APAC markets including Guangzhou, Hyderabad, Jakarta, Metro Manila, Seoul, Shanghai, and Singapore continued to prioritize premium and ESG-compliant office assets. As a result, relocation-led transactions gained prominence, accounting for over half of the leasing activity in Guangzhou and Shenzhen. In Seoul, flight-to-quality trends and refurbishment-led upgrades further encouraged occupiers to relocate to higher-grade office buildings.

Of the 19 Mn sq ft of new Grade A office supply added across APAC, Indian cities accounted for over 51% of total addition. Meanwhile, the Chinese cities- Shenzhen, Shanghai, and Guangzhou collectively contributed over 36% of the overall new supply.