India, SE Asia Lead APAC Office Expansion as Firms Seek Resilience
India and Southeast Asia are driving APAC office growth as firms shift to office-centric models to boost productivity and talent attraction.
India and Southeast Asia have emerged as the most growth-oriented clusters within the Asia Pacific region, according to the latest 2027 Colliers Asia Pacific Workplace Insights report. As corporate workplace models stabilize, businesses in these regions are prioritizing office-centric structures to drive productivity, collaboration, and long-term business performance.
The Shift to Office-Centric Models
The era of workplace uncertainty is giving way to a period of stabilization. The report reveals that 82 per cent of surveyed organizations across the Asia Pacific region have now adopted office-centric models. This shift is not merely a return to old habits but a strategic move to foster innovation and business growth.
Furthermore, the stability of these models is evident in the long-term outlook, with 80 per cent of occupiers projecting no significant changes to their established workplace policies over the next 12 months. The demand for physical offices is being fueled by three core pillars:
- Productivity and Business Performance: The primary driver for maintaining a physical presence.
- Collaboration: Creating spaces where teams can interact effectively.
- Innovation: Using the office as a hub for new ideas and creative problem-solving.
India: A High-Growth Engine
Within this regional landscape, India stands out as a powerhouse for office demand. Despite various geopolitical risks, organizations in the India and Southeast Asia cluster are actively pursuing business development. Approximately 34 per cent of organizations in this specific cluster are actively expanding their operations.
Arpit Mehrotra, Managing Director of Office Services at Colliers India, noted that India remains a high-growth market underpinned by a resilient economy. He highlighted that occupiers are increasingly viewing the office as a strategic enabler rather than just a cost center, using it to attract top talent and enhance collaboration.
This "flight to quality" is becoming a dominant trend, with 21 per cent of occupiers in India and Southeast Asia focusing on upgrading to higher-quality office spaces or reconfiguring their existing layouts to better suit modern needs.
AI: A Driver for New Space, Not Downsizing
Contrary to popular belief, the rise of Artificial Intelligence (AI) is not leading to a reduction in real estate footprints. Instead, the technology is reshaping how space is used. All surveyed respondents indicated that AI is creating specialized roles that require distinct technical skill sets and new collaborative models.
The report suggests that AI will actually stimulate demand for specific types of environments:
- 47 per cent of occupiers expect AI to drive direct demand for different workplace formats.
- There is a growing need for technology-enabled environments that can support AI-driven workflows.
Optimizing Portfolios Amid Cost Pressures
While growth is a priority, cost management remains a critical factor. Roughly 75 per cent of regional respondents identified occupancy expenses as a major determinant in their operational strategies. However, instead of shrinking their footprint, companies are opting for portfolio optimization.
The data shows a preference for stability over contraction:
- 40 per cent of respondents intend to renew their existing leases.
- 29 per cent plan to maintain their current spatial footprints without any reductions.
Mike Davis, Managing Director of Occupier Services, Asia Pacific at Colliers, emphasized that the conversation has evolved. The focus is no longer on whether employees should be in the office, but how the workplace can contribute to measurable business objectives like innovation and performance.