India Emerges as a Leader in APAC Office Space Demand

India's Predominant Role in APAC's Office Market

It is anticipated that India will become a major contributor to the demand for office space in the Asia Pacific market by 2024. The top eight Indian cities, including Bengaluru, Mumbai, and Delhi, are expected to account for over half of the total demand in the region.

Cushman & Wakefield's Forecast for India's Office Demand

Cushman & Wakefield, a prominent global real estate services firm, has projected in its 2024 Asia Pacific Office Outlook that the combined demand from Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune will reach approximately 40 million square feet. This figure represents about 52% of the total demand in the Asia Pacific region.

India's Rising Influence in Commercial Real Estate

Anshul Jain, the managing director for India & Southeast Asia and head of APAC- tenant representation at Cushman & Wakefield, noted India's significant role in anchoring commercial real estate demand in the Asia-Pacific area. He attributed this rise to the country's rapid GDP growth, controlled inflation, extensive tech talent pool, and the trend of global corporations setting up in India. He also mentioned that demand in major Chinese cities showed year-over-year improvement, while markets in Sydney, Melbourne, Tokyo, and Singapore demonstrated positive trends despite economic challenges.

Regional Dynamics: China and Southeast Asia

The report from Cushman & Wakefield also highlighted a modest recovery in Mainland China's key cities, including Beijing, Shanghai, Guangzhou, and Shenzhen. The demand in these cities is expected to increase to 18 million square feet by 2024, a rise from the 13 million square feet forecasted for the end of this year. Furthermore, Southeast Asian markets are likely to add significantly to the regional demand, with Kuala Lumpur and Manila benefitting from their countries' strong economic growth outlooks, and Singapore maintaining steady performance.