365Telugu.com online news,Hyderabad, May 24, 2025: India has solidified its position as a key player in the Asia-Pacific (APAC) office leasing market, capturing 47% of the region’s total leasing volume in 2024, according to Knight Frank’s latest Asia-Pacific Horizon II report, Whiplash to Resilience: Corporate Real Estate in the New World Order. This marks a significant rise from its 36% share in 2015, highlighting India’s growing role amid global trade shifts and supply chain diversification.
India’s office leasing reached a record 71.90 million square feet (6.68 million square meters) in 2024, driven by strong demand from Global Capability Centres (GCCs), multinational corporations, and third-party IT service providers. Cities like Bengaluru, Hyderabad, Pune, and the National Capital Region (NCR) have emerged as top hubs, offering cost efficiency, skilled talent, and robust infrastructure.
Industrial Market Stability and Flexibility Trends
Unlike other APAC markets such as Shanghai and Beijing, which face oversupply issues, Indian industrial hubs like Mumbai, NCR, and Bengaluru have maintained balanced vacancy rates. The report notes a growing preference for build-to-suit and flexible leasing formats, reflecting occupiers’ focus on customization and operational agility.
India’s Resilience Amid Global Shocks
India is positioned in the ‘low exposure, moderate resilience’ quadrant of Knight Frank’s Vulnerability Matrix, indicating lower reliance on external trade and a strong capacity to withstand global economic volatility. Supported by a large domestic market, sound fiscal policies, and a diversified services sector, India stands as a stable anchor compared to export-dependent economies like South Korea and Singapore.
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Regional Shifts and India’s Office Dominance
The report highlights the impact of the Trump 2.0 tariff regime and global trade reconfiguration, with Southeast Asian countries like Vietnam and Indonesia expecting a 15–20% surge in industrial space demand due to manufacturing growth. However, India leads in office leasing, absorbing nearly half of APAC’s total volume, driven by its services-oriented economy.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated, “India’s rise to 47% of APAC’s office leasing volumes underscores its strong fundamentals and appeal as a strategic hub for global firms. As trade realignments continue, India’s real estate sector is well-positioned to drive regional growth.”
Evolving Corporate Real Estate Strategies
Tim Armstrong, Global Head of Occupier Strategy and Solutions at Knight Frank, emphasized the shift in corporate real estate strategies: “The ‘China+N’ model is now a standard approach. Corporate real estate must focus on operational durability and total-cost performance, requiring new strategies for portfolio planning and leasing.”
India’s real estate market continues to adapt, with flexible leasing, build-to-suit options, and portfolio optimization gaining traction, particularly among tech firms and startups. With rising domestic demand, digital transformation, and a strong supply of Grade A commercial assets, India is set to remain a cornerstone of APAC’s corporate real estate landscape.