Robust sentiment positions India as APAC's top office market

 
National – June 23rd, 2025 – CBRE, leading real estate consulting firm, has recently released Asia-Pacific Market Sentiment Survey, highlighting India’s sustained growth and resilience across key real estate segments. The survey points out that as certain markets within Greater China and Australia experience a softening in sentiment and more subdued leasing activity, India's office sector stands out as a remarkably resilient and high-performing market. This positive trajectory is fundamentally fueled by robust occupier confidence and consistent, healthy rental growth across its key cities.

According to the findings of the survey, India remains one of the top Asia-Pacific (APAC) office markets—alongside Japan and Singapore. Sectors like IT, BFSI, and Global Capability Centres (GCCs) continue to drive demand, underscoring the country’s strong economic fundamentals and long-term growth outlook. The survey identifies that the office Market Sentiment Index in India surged significantly from September 2024 to June 2025 and above the 70% threshold mark. This marks the highest sentiment recorded in India and signals continued momentum in office leasing among several APAC peers.

The survey also highlighted that renewal versus relocation decisions continued to dominate leasing activity in the office segment. However, expansionary demand persisted in India and Japan but softened in Korea and Singapore. 
A recent office leasing report by CBRE shows that the total gross office leasing increased by 5 % YoY to 18 mn. sq. ft. in Jan-Mar 2025 across nine cities. This shows sustained occupier confidence and steady demand for quality office spaces in India despite global economic uncertainties

The survey further finds India's retail sector’s resilience compared to its counterparts in the APAC region. Despite a slight decrease in leasing activity, the market maintains a strong sense of optimism. Indian retailers are strategically expanding, focusing on high-traffic, high-potential locations within major urban centres. This approach underscores sustained consumer demand and reflects strong confidence in the long-term prospects of the country's retail landscape, even as other markets experience consolidation and slower leasing cycles.

Key Findings:

• India is one of the only markets in APAC where the market sentiment index in all three sectors—Office, Retail, and Industrial & Logistics—is above the neutral 50% line, reinforcing overall market resilience. 

• Despite a dip in enquiry frequency in some quarters, sustained demand from IT, BFSI, and GCCs is driving activity in India. (Reference from IOF Q12025)

• Office demand remains concentrated in Tier 1 cities, with select Tier 2 hubs also witnessing expansion. As per India Office figures report Q1 2025 - Bengaluru, Hyderabad, Delhi-NCR, and Mumbai are expected to continue dominating leasing activity. 

• While India’s retail leasing has moderated, sentiment remains more optimistic than regional peers. Retailers are focusing expansion efforts on high-footfall, high-yield locations, especially in key metros.

• Despite cautious expansion strategies, India has not seen large-scale store consolidations, unlike some regional peers. 

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said: “India’s sustained office market momentum and high sentiment index reflect its growing stature as a stable and resilient investment destination. As APAC peers see softening demand, India’s diversified occupier base, tech-driven demand, and long-term fundamentals are keeping leasing markets vibrant. The office sector remains the standout performer, backed by strategic expansions by GCCs and IT players. India’s consistent performance across office, retail, and industrial sectors positions it as a key pillar of stability in the Asia-Pacific real estate landscape. As global occupiers reassess their regional strategies amidst economic uncertainty, India offers a compelling proposition with its resilient demand, expanding infrastructure, and landlord-favourable market dynamics.” 

Ada Choi, Head of Research APAC, CBRE, said, “While much of the region is adjusting to post-pandemic occupancy trends, India is charting its own growth path. Its commercial markets, particularly offices, show strength in demand and rental stability. This resilience positions India well for continued expansion, particularly as global enterprises reassess and diversify their APAC footprints. Supported by robust fundamentals and strategic sectoral growth, India is expected to remain a leading destination for commercial real estate investment and expansion in the coming quarters.”

Note: CBRE's Asia Pacific Market Sentiment Survey was conducted from May 20th, 2025, to June 4th, 2025. A total of 517 responses were received from CBRE's leasing market professionals across Asia Pacific.