India Poised to Capture 40% of APAC Office Supply by 2026

The Asia Pacific region is set to witness a significant surge in Grade-A office supply, reaching a projected 61.3 million square feet by 2026. India is expected to contribute a remarkable 40% of this total, positioning the country as a leading player in the office market alongside China. According to the latest report from CBRE, the increase from 55.3 million square feet in 2025 reflects strong demand and a growing perception of India as a talent-rich hub.

The report highlights that India and mainland China will account for over 75% of the total Grade-A office supply in the region by 2026. Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, Middle East & Africa, emphasized that “India’s growing dominance in the APAC office supply landscape reflects the structural depth of the demand drivers in the country.” This growth is occurring even as global economic conditions shift, with many businesses viewing India as an essential destination for multi-functional growth.

Indian Cities Lead Growth in Office Supply

Among the top five markets expected to report the highest Grade-A office supply in 2026, three are in India. The report forecasts that Bengaluru will lead the way with 12.1 million square feet of new office space, followed closely by Shanghai with 10 million square feet and Delhi-NCR with 7.1 million square feet. The expansion in Bengaluru will primarily be supported by Global Capability Centres (GCCs), which are playing a pivotal role in the city’s office market dynamics.

As Ada Choi, Head of Research for Asia Pacific at CBRE, noted, “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.” Occupiers are increasingly adjusting their space requirements in response to softer economic growth, prioritizing high-quality buildings in core locations.

Shifting Dynamics in the Rental Market

Despite a projected peak in supply, developed markets are expected to remain constrained in the office sector. The report indicates that premium office spaces will be in high demand, particularly as companies reinforce stricter office attendance policies. Furthermore, CBRE’s “2026 Asia Pacific Investor Intentions Survey” reveals a shift in preferences, with office assets now surpassing industrial and logistics sectors as the most attractive investment option for the first time in six years.

As a result, rental rates for Grade-A offices across the Asia Pacific are anticipated to continue rising in 2026. Key markets such as Tokyo, India’s tier-1 cities, and Australian urban centres are expected to lead this growth, although at a slower pace than the previous year. In 2025, Mumbai’s Bandra Kurla Complex (BKC) recorded a significant 23.1% year-on-year rental increase, followed by Tokyo at 13% and Delhi-NCR at 10.1%.

In 2026, while Mumbai’s BKC is projected to sustain double-digit rental growth at 12.5%, Tokyo is expected to see a rental increase of 13.1% driven by low vacancy rates and the demand for high-quality office space. On the other hand, China’s tier-1 markets have experienced a more than 40% decline in rents since the beginning of the downturn, although this rate of decline is expected to ease due to a strengthening domestic demand, particularly in technology sectors.

The evolving landscape of the Asia Pacific office market reflects a complex interplay of supply and demand, with India emerging as a critical player on the international stage. As businesses navigate these changes, the focus will remain on optimizing investments and ensuring high-quality offerings to attract and retain talent in a competitive environment.