New Delhi, Nov 8 (FN Bureau) India continued to lead Asia Pacific office market activity driving over 70% of the total demand during July-September quarter (Q3) of 2024, as per consultancy firm Colliers’ Asia Pacific Office Market Insights report released on Friday. The report said that India, New Zealand, and Singapore saw annual leasing growth of over 30% in Q3 2024. “At 1.61 million sqm (17.3 million sq ft), India particularly continued to lead APAC office leasing activity. Over 70% of the office demand in Q3 2024 came from India, distantly followed by China at 17%,” said Colliers report. Within India, more than half of the Grade A space uptake came from Bengaluru and Hyderabad. With over 1.34 million sqm (14.4 million sq ft) of new completions in Q3 2024, overall new supply in India too followed the demand trajectory, thus keeping vacancy levels range bound at around 17%.
“Driven by robust demand and strong occupier interest in premium spaces, average rentals in major office markets across India are in the growth phase, having risen by up to 10% annually in Q3 2024. After seeing significant recovery gains, the Indian office market is set to enter an expansionary phase, wherein rents are expected to firm up further,” said Arpit Mehrotra, Managing Director, Office services, Colliers India. The Colliers report said that demand across the top 11 countries in the APAC region rose by 10.7% year-on-year, reaching 2.2 million sqm (23.7 million sq ft) in Q3 2024. “The APAC office market is poised for continued growth as we look to 2025 and beyond, driven by an evolving understanding of what makes a workspace truly valuable. Office occupiers’ focus on prioritizing both productivity and sustainability, alongside their commitment to adaptability and innovation, will drive the market forward,” said Mike Davis, Colliers’ Managing Director of Occupier Services in APAC,.