India leads Asia-Pacific in office leasing sentiment: CBRE

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    India has taken the lead in the Asia-Pacific office real estate market, supported by strong occupier sentiment and consistent leasing activity, according to CBRE’s latest Asia Pacific Market Sentiment Survey, as published by Business Standard.

    The survey shows India’s Office Market Sentiment Index surpassed the 70 percent mark between September 2024 and June 2025 — the highest among all regional markets. CBRE uses 50 percent as the neutral baseline; a score above that reflects positive sentiment regarding leasing and expansion.

    India was also the only country in the region where sentiment across all three real estate sectors — office, retail, and industrial — remained above the neutral threshold, the report said.

    Earlier this year, CBRE’s India Office Figures for the first quarter of 2025 revealed that gross office leasing rose 5 percent year-on-year, reaching 18 million square feet across nine cities during January to March 2025. Major markets such as Bengaluru, Hyderabad, Delhi-NCR, and Mumbai continued to dominate leasing demand. Additionally, some Tier 2 cities also saw increased activity.

    CBRE attributed this leasing momentum to robust demand from the technology and financial services sectors, as well as ongoing investments by Global Capability Centres (GCCs). While lease renewals remain the primary driver of transactions, expansion-led leasing by IT firms and GCCs continues to be strong in India and Japan. In contrast, such activity has declined in markets like South Korea and Singapore.

    Across the Asia-Pacific region, decisions between renewals and relocations are a common trend. However, India stands out for its consistent expansion-driven leasing demand, the report noted.

    “India’s sustained office market momentum and high sentiment index reflect its growing stature as a stable and resilient investment destination,” said Anshuman Magazine, chairman and CEO for India, Southeast Asia, Middle East, and Africa at CBRE.

    He added that while other Asia-Pacific markets are seeing softening demand, India’s diversified occupier base, tech-driven growth, and strong fundamentals are keeping its leasing markets vibrant.

    Ada Choi, head of research for Asia-Pacific at CBRE, said India’s commercial real estate, particularly in the office segment, demonstrates stable rental trends and strong demand. “This positions the country for continued expansion, especially as global enterprises diversify their Asia-Pacific portfolios,” she said.

    Despite India’s momentum, the outlook remains subdued for other parts of the Asia-Pacific region. The report observed a decline in tenant inquiries and site inspections in Greater China and Australia, suggesting waning interest in those markets.

    CBRE’s findings underline India’s growing importance as a commercial real estate hub in the region, bolstered by its strong leasing trends and sector-wide optimism.

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