India drives 70% of APAC office leasing in H1 2026: Colliers
Synopsis
India isn't just participating in the Asia-Pacific office market — it's running it. With over 70% of APAC leasing in H1 2026 coming from Indian cities, and GCCs showing no signs of slowing, the country is effectively setting the pace for the entire region even as new supply across APAC fell 37% year-on-year.
Key Takeaways
India accounted for more than 70 per cent of office leasing across 11 APAC markets in H1 2026 .
Total APAC leasing reached 4.6 million sq m ( 49.5 million sq ft ), up 3 per cent year-on-year .
New office supply across the eleven markets fell 37 per cent year-on-year to 3 million sq m .
India and Mainland China together contributed over 80 per cent of total new completions.
Expansion of global capability centres (GCCs) and cost arbitrage identified as key demand drivers.
Office market activity expected to remain strong in H2 2026 , with rents likely rising in high-activity markets.
India accounted for more than 70 per cent of office leasing across 11 major Asia-Pacific markets in the first half of 2026, anchoring regional demand on the back of robust Grade A office space absorption, according to a report by property consultancy Colliers released on Monday, 24 August. The finding underscores India's growing dominance in the APAC commercial real estate landscape even as global uncertainty persists.
Regional Leasing at a Glance
The eleven key APAC office markets collectively recorded leasing of 4.6 million sq m (49.5 million sq ft) in H1 2026, a rise of 3 per cent year-on-year, the Colliers report showed. India contributed over two-thirds of both regional office demand and supply during the period — a concentration that analysts say reflects structural advantages rather than a temporary spike.
New office supply across the eleven markets, however, declined sharply — down 37 per cent year-on-year to 3 million sq m (32.3 million sq ft). India and Mainland China together accounted for more than 80 per cent of total completions, suggesting that fresh construction activity remained highly concentrated even as demand spread.
GCCs Powering India's Office Demand
'India continues to anchor leasing volumes in the APAC office market, underpinned by strong demand fundamentals, including expansion of global capability centres in the country,' said Arpit Mehrotra, Managing Director, Office Services, Colliers India. He added that skilled talent availability and cost arbitrage are likely to support robust absorption despite geopolitical uncertainty, further strengthening India's position as a preferred office destination in Asia Pacific.
Global capability centres — offshore units set up by multinational corporations to consolidate technology, analytics, and back-office functions — have been a primary engine of Grade A office demand in Indian cities over the past several years. This is the latest in a series of reports that have flagged GCC-led leasing as a multi-year structural trend rather than a cyclical uptick.
Supply Constraints and Vacancy Outlook
Vimal Nadar, National Director and Head of Research, Colliers India, said office demand across key APAC markets remained resilient in H1 2026 and that India is expected to continue driving regional leasing volumes over the next few quarters. Vacancy levels are likely to remain stable as demand keeps pace with new supply, while rents could rise in high-activity markets, the report noted.
Notably, the steep drop in new supply — even as demand holds firm — could tighten availability in prime micro-markets, creating upward pressure on rentals in cities such as Bengaluru, Hyderabad, and Mumbai.
APAC Outlook for H2 2026
The Colliers report said APAC continues to outperform global peers and remains a key contributor to global economic expansion. Resilient growth and likely stability in interest rates are expected to support business confidence and investment, although geopolitical and trade risks remain a watch factor. Office market activity is expected to stay strong in H2 2026, with demand increasingly concentrated in high-quality, future-ready assets.
Point of View
But the more telling figure is the 37% collapse in new regional supply — a sign that developers outside India and China are pulling back even as occupiers push forward. If Indian supply cannot scale fast enough to match GCC-driven demand, the resulting vacancy squeeze will push rents higher and potentially price out mid-tier occupiers. The GCC boom has been a genuine structural shift, but its concentration in a handful of Indian micro-markets means the risk of localised overheating is real — and largely absent from the headline numbers.
NationPress
24 Aug 2026
Frequently Asked Questions
What share of APAC office leasing did India account for in H1 2026?
India accounted for more than 70 per cent of office leasing across 11 major Asia-Pacific markets in the first half of 2026, according to a Colliers report released on 24 August. The country also contributed over two-thirds of both regional office demand and supply during the period.
What drove India's office leasing demand in H1 2026?
The primary driver was the continued expansion of global capability centres (GCCs) — offshore units set up by multinationals for technology, analytics, and back-office functions. Skilled talent availability and cost arbitrage were also cited by Colliers as key factors supporting robust absorption.
How did overall APAC office supply change in H1 2026?
New office supply across the eleven APAC markets declined 37 per cent year-on-year to 3 million sq m (32.3 million sq ft) in H1 2026. India and Mainland China together accounted for more than 80 per cent of total completions.
What is the outlook for APAC office markets in H2 2026?
Colliers expects office market activity to remain strong in H2 2026, with demand increasingly concentrated in high-quality, future-ready assets. Vacancy levels are likely to stay stable, while rents could rise in high-activity markets, though geopolitical and trade risks remain a concern.
Which cities in India are most affected by the office leasing surge?
The Colliers report does not break down leasing by individual Indian city, but GCC-driven demand has historically been concentrated in Bengaluru, Hyderabad, and Mumbai. Tightening supply in these micro-markets could push Grade A rents higher in the coming quarters.
