APAC office supply to peak this year; India likely to lead with around 40% share: CBRE Report
New Delhi, February 23
The supply of Grade-A office spaces in the Asia Pacific region is expected to hit a new peak of 61.3 million square feet in calendar year 2026, rising 10.8 per cent from 55.3 million square feet in 2025, on the net floor area basis, and India alone is likely to account for 40 per cent of it, according to CBRE's 2026 Asia Pacific Real Estate Market Outlook.
The report said that along with mainland China, the country is expected to contribute over 75 per cent of the total supply in 2026.
"India's growing dominance in the APAC office supply landscape reflects the structural depth of the demand drivers in the country," said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE. "Even amid global macroeconomic recalibration, occupiers viewing India as a scalable, talent-rich destination for multi-functional growth."
Among the top five markets that are expected to report the highest supply in 2026, three are from India. According to the report, office supply is expected to be the highest in Bengaluru at 12.1 million square feet. It would be followed by Shanghai (10 million square feet) and Delhi-NCR (7.1 million square feet). In Bangalore, the supply will continue to be supported by Global Capability Centres (GCCs).
"As we move into a cycle where income growth is at the centre of real estate decision-making, the ability for occupiers and investors to recalibrate and innovate will be critical," said Ada Choi, Head of Research, Asia Pacific for CBRE. "Occupiers are responding to softer economic growth by sharpening their space requirements and prioritising high-quality buildings in core locations, while investors are focusing on income resilience and portfolio optimisation. It will also be important to capture emerging opportunities in sectors such as data centres and living."
The report added that despite an all-time high supply, most developed markets will remain supply-constrained in the office sector. In 2026, the expansion and new set-up activity is expected to increase in most countries, with premium offices being keenly sought after, partly fueled by corporates enforcing stricter office attendance mandates.
Moreover, CBRE's recently released "2026 Asia Pacific Investor Intentions Survey" highlighted that office assets have overtaken industrial and logistics as the most-preferred sector for investment in the region, for the first time in six years.
As a result, rents of Grade A offices in the Asia Pacific region are expected to remain on an upward track in 2026. The report said that Tokyo, India's tier-1 markets, and Australian cities will continue to lead growth, albeit at a slower pace than last year.
In 2025, Mumbai's BKC led the rental growth in the APAC region, rising 23.1 per cent year-on-year. It was followed by Tokyo Grade A offices at 13 per cent YoY and Delhi-NCR (core Gurugram) at 10.1 per cent.
In 2026, while Mumbai's BKC will sustain double-digit rental gains driven by the tight availability of new premium office space and strong expansionary demand from flexible space operators, the growth is likely to moderate to 12.5 per cent. Tokyo would continue with double-digit percentage growth in 2026, at 13.1 per cent, on the back of low vacancy and occupiers' willingness to pay a premium for high-quality prime office space to attract and retain employees.
In China's tier I markets, the rents have fallen by more than 40 per cent since the onset of the downward cycle. This year, the rate of decline is expected to narrow, partly supported by stronger office requirements resulting from domestic demand, fuelled by AI and tech development.
— ANI
Reader Comments
While the growth numbers are impressive, I hope this development is sustainable and inclusive. We need to ensure these new office spaces don't just create more traffic congestion in our metros and that the benefits reach tier-2 cities as well. Infrastructure must keep pace.
Interesting data point for investors. The shift back to office as the preferred asset class in APAC after six years, led by India, signals a strong belief in the long-term value of physical workspace, even in a hybrid era. Mumbai's rental growth is particularly striking.
Bengaluru at 12.1 million sq ft! No surprise there. The GCC wave is real. But with such massive supply coming in, will the demand hold? Hope the developers have done their homework and we don't end up with ghost buildings like in some other markets.
The contrast with China's tier-I markets, where rents have fallen over 40%, is stark. It really highlights how India is becoming the stable, growth-oriented alternative in the region for office space investment and operations.
Good for the economy, but as a professional in Delhi-NCR, I'm worried about the commute. 7.1 million sq ft more in NCR means more cars on the road. Can we please invest in metro expansion and better public transport alongside these office towers?
A We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.