New Delhi, Sep 29 (NationPress) India’s office market has solidified its position as the leading growth engine in the Asia Pacific region, comprising 44 percent of net new supply and an impressive 61 percent of total net absorption in the April-June quarter of this year (Q2 2025) — significantly surpassing its regional counterparts, including mainland China and Southeast Asia, according to a report released on Monday.

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

“In Q2 2020, India made up 26 percent of net new supply and 30 percent of net absorption, while in Q2 2015, those numbers were 32 percent and 35 percent, respectively,” as per the latest report by Cushman and Wakefield.

Over the past ten years, India has progressively increased its share of regional office activities, evolving from a significant contributor to the preeminent force in APAC’s commercial real estate sector.

This trend underscores the country’s robust growth trajectory and its ability to maintain demand amidst global challenges.

“India’s office sector has transitioned from merely bouncing back — it is now developing into a structural growth narrative. The leap from contributing a third of regional activity in 2015 to being the dominant force in APAC by 2025 reflects profound occupier demand and developer confidence,” stated Anshul Jain, Chief Executive – India, SEA and APAC Office and Retail, at Cushman and Wakefield.

This ongoing momentum, supported by global capability centres (GCCs), start-ups, and manufacturing, showcases strong long-term fundamentals and a distinct shift towards quality, Jain added.

The report indicates that India’s leading position in regional office demand is bolstered by significant sectoral activity.

In the last five years (2020–2025), the IT/BPM, engineering and manufacturing, and BFSI sectors have emerged as the primary drivers of office demand in the country, collectively accounting for a substantial share of leasing activity.

The IT/BPM sector led with 104.9 million square feet (30 percent), followed by engineering and manufacturing and BFSI, which accounted for 57.3 million square feet (16.3 percent) and 56.8 million square feet (16 percent), respectively, the report highlighted.

Additionally, India has firmly positioned itself as a global hub for digital innovation and engineering research and design, thanks to a skilled tech talent pool.

“Currently, India hosts approximately 50 percent of the world's Global Capability Centres (GCCs), which represent around 30 percent of gross leasing volume,” the report emphasized.

Notably, over 90 percent of this market activity is concentrated in the top six cities: Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, and Pune. Bengaluru alone absorbs more office space in a single year than many European cities do over five years, as reported.

These cities have emerged as the primary gateways for global multinationals to establish their Global Capability Centres (GCCs) or offshore captive centres.

aps/na