Is India Emerging as the Strategic Hub for Global Corporations in Asia-Pacific?
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Synopsis
A recent report reveals that India has significantly increased its share of Asia-Pacific's office leasing market, now accounting for 47%. This shift emphasizes India's strategic significance in the region as global corporations seek stability amid economic changes. Explore how India is emerging as a prime destination for multinational enterprises.
Key Takeaways
- India represents 47% of APAC office leasing volumes as of 2024.
- Strong demand from Global Capability Centres boosts leasing activity.
- Key cities like Bengaluru and Delhi-NCR are at the forefront of this growth.
- Build-to-suit and flexible leasing options are gaining traction.
- India's economy shows resilience against global shocks.
Mumbai, May 23 (NationPress) In 2024, India represented 47 percent of all Asia-Pacific (APAC) office leasing activities, a significant increase from 36 percent in 2015. This growth highlights the country's strategic importance in light of trade shifts, supply chain diversification, and macroeconomic challenges, according to a recent report.
The office transaction volume in India reached a record high of 6.68 million square meters (or 7.19 million square feet) in 2024, driven by strong demand from Global Capability Centres (GCCs), multinational firms, and third-party IT service providers, as reported by Knight Frank.
This report underscores India’s position as a long-term, stable hub for businesses seeking cost-efficiency, talent availability, and infrastructure readiness, especially in key cities like Bengaluru, Hyderabad, Pune, and Delhi-NCR.
According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, “India’s share of APAC’s office leasing volumes climbing to 47 percent showcases the country’s robust fundamentals and increasing attractiveness as a strategic hub for global enterprises.”
He further noted, “As international companies strive for operational resilience amidst ongoing trade realignments, India’s real estate sector is well-positioned to contribute significantly to regional growth.”
While various APAC markets face oversupply issues, such as Shanghai and Beijing, Indian industrial centers like Mumbai, Delhi-NCR, and Bengaluru have maintained balanced vacancy levels, supported by consistent leasing activity.
In India, build-to-suit formats and flexible leasing options are gaining popularity, indicating a shift towards customization and operational flexibility.
The country is categorized under the ‘low exposure, moderate resilience’ quadrant, signifying relatively low dependence on external trade and a strong capacity to absorb global shocks.
Unlike export-driven economies like South Korea and Singapore, India’s substantial domestic consumption, prudent fiscal policies, and diversified services sector insulate it from external volatility, establishing it as a reliable anchor in the region, the report states.
India’s ongoing success is supported by rising domestic demand, digital transformation, and readiness on the supply side across Grade A commercial properties.
As businesses adjust real estate portfolios to navigate volatility and explore new markets, India’s evolving real estate landscape presents both scalability and stability, the report concluded.
Point of View
I recognize India's growing prominence in the Asia-Pacific office leasing market as a reflection of its strong fundamentals. The nation's ability to attract multinational corporations showcases its potential as a stable and strategic hub amidst fluctuating global economic conditions. We are committed to covering this evolving narrative with the utmost integrity and accuracy.
NationPress
08/06/2025
Frequently Asked Questions
What percentage of APAC office leasing volumes does India hold?
India accounts for 47% of all Asia-Pacific office leasing volumes in 2024, up from 36% in 2015.
What factors contribute to India's appeal for global corporations?
India's appeal lies in its cost efficiencies, talent depth, and readiness of infrastructure, particularly in cities like Bengaluru, Hyderabad, Pune, and Delhi-NCR.
How do India's vacancy levels compare to other APAC markets?
While some APAC markets are facing oversupply challenges, Indian cities such as Mumbai, Delhi-NCR, and Bengaluru maintain balanced vacancy levels.
What is the significance of build-to-suit formats in India?
Build-to-suit formats and flexible leases are becoming increasingly popular in India, reflecting a shift towards customization and operational agility.
How does India's economy buffer against external shocks?
India's large domestic consumption base, prudent fiscal management, and diversified services sector provide insulation against external volatility.
