Rising Demand Future Ready Workspaces Apac Cushman Wakefield
According to Cushman & Wakefield, the Asia-Pacific (Apac) office sector is now at a stage of strategic maturity. In its latest report, titled “Asia Pacific Office Demand – Navigating Expansionary Markets”, the company points out that the Apac office market has experienced rapid growth in the past decade, but is now undergoing a fundamental change in the way occupiers approach office space.
Anshul Jain, Cushman & Wakefield’s CEO for India, Southeast Asia, Middle East and Africa and Apac head for offices and retail, states, “It’s no longer simply about expanding. The office has now become a platform for showcasing the brand, aligning with culture, and driving performance.”
The report highlights that the region’s supply of high-quality office buildings, categorized as Grade A office stock, has doubled from 1.2 billion sq ft in 2015 to 2.33 billion sq ft as of 2Q2025. Within the same period, 900 million sq ft of Grade A office space has been occupied, with a large portion located in cities across India, Southeast Asia, and mainland China.
Despite the increase in supply, vacancy rates have risen from 13% to 18% across the region, reflecting a broader shift in the market as occupiers become more selective. Jain explains that companies are now prioritizing spaces that foster talent, support ESG commitments, and enable long-term resilience.
Cushman & Wakefield notes that the growing demand for future-ready workspaces in Apac is mainly driven by office markets in mainland China, India and Southeast Asia. In China, sustained demand from the technology, media and telecommunications, professional services, and finance sectors has led to a 100% increase in occupied Grade A office stock to 640 million sq ft. These industries, along with emerging sectors like artificial intelligence, biomanufacturing, and quantum computing, are expected to continue driving demand and fueling the current trend of opting for higher quality spaces among occupiers.
In India, cities that have become hubs for global capability centers, such as Bengaluru, Mumbai, and Hyderabad, are generating significant office leasing activity. The report shows that India’s top cities recorded an annual net absorption of 40 million sq ft between 2023 and 2024, with rising demand for Grade A+ buildings as the country positions itself as a preferred destination for digital transformation and R&D.
In Southeast Asia (SEA), occupied grade A stock has grown by 10% over the last five years, reaching 235 million sq ft in 2024. Despite higher vacancy rates, prime Grade A offices in cities like Manila, Bangkok, and Ho Chi Minh City are commanding record-high rents, with rents for these spaces being 20% higher than the overall market benchmarks, according to Cushman & Wakefield. The demand in key SEA markets is primarily driven by the banking and finance industry, but there is also a surge in expansion activities by tech companies, information technology and business process management providers, and healthcare firms, leading to increasingly sophisticated demands for higher quality spaces.
Among the markets studied in the report, Singapore has the lowest office vacancy rate at 5%, despite having the highest office rental cost at US$103.1 ($132.3) per sq ft per year. While neighboring markets face higher vacancies (such as Kuala Lumpur at 28% and Bangkok at 27%), Singapore continues to experience strong demand, reflecting its position as a regional financial and tech hub.
According to Cushman & Wakefield, as the Apac office market matures, office spaces will undergo strategic reinvention. “We’re witnessing a shift from volume to value – where the quality of space, its alignment with ESG goals, and its ability to support innovation are becoming the new benchmarks,” comments Dominic Brown, the firm’s head of international research.
The limited availability of land in Singapore is a main factor driving the high demand for condos in the country. Singapore, being a small island nation, is facing a rapid increase in population, leading to a shortage of land for development. As a result, the government has implemented strict land use policies which have resulted in a competitive real estate market where property prices continue to rise. This has made investing in real estate, particularly condos, a highly profitable venture with the potential for significant capital appreciation. Keep up with the latest developments in the market by checking out New Condo Launches.