India and Southeast Asia are emerging as the Asia-Pacific region’s leading growth-oriented office markets, with occupiers focusing on expansion, workplace quality, talent availability and operational efficiency, according to Colliers’ 2027 Asia Pacific Workplace Insights report.
The report, based on a survey of more than 300 office occupiers across 11 markets, found that 82% of respondents across the Asia-Pacific region operate office-centric workplace models, while 80% expect no significant change to their workplace policies over the next 12 months.
Productivity and business performance remain the primary drivers of office space requirements, followed by collaboration and innovation. The findings indicate that companies are increasingly viewing offices as spaces for knowledge sharing, learning and collaboration rather than simply places to accommodate employees.
India and Southeast Asia continue to attract occupiers seeking business expansion and long-term portfolio resilience. Despite geopolitical uncertainties, 34% of occupiers in the cluster plan to pursue growth and expand their operations. Cost efficiency and access to skilled talent remain the key factors influencing location decisions.
India has also emerged as an important growth market for large corporations, with businesses showing a greater willingness to upgrade to higher-quality offices and reconfigure existing workplaces. This reflects a shift towards improving workplace performance and employee experience rather than focusing solely on reducing costs.
“India remains a high-growth office market in the APAC region, underpinned by a resilient economy and sustained occupier expansion,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
He added that 21% of occupiers in India and Southeast Asia prioritise upgrading to higher-quality office spaces, while an equal proportion are focused on reconfiguring their offices. These trends point to increased investment in workplaces that support evolving workstyles, talent attraction and long-term business growth.
AI to reshape workplace requirements
Artificial intelligence is expected to play a growing role in shaping office requirements and workplace strategies. All respondents surveyed expect AI to create new specialised roles requiring different skills, capabilities and collaboration models.
Occupiers expect AI to have its greatest impact on productivity and output, followed by skills, job roles and workforce structures.
However, the report challenges the expectation that AI adoption will necessarily lead to a reduction in office demand. Around 47% of respondents expect AI to drive demand for different workplace formats and space types, including technology-enabled and collaboration-focused environments.
The findings suggest that as AI changes how employees work, businesses will increasingly assess whether their offices support new ways of working and facilitate interaction between teams.
Occupiers focus on workplace optimisation
Despite continued pressure on costs, companies across Asia-Pacific are prioritising workplace optimisation over large-scale office consolidation. The report found that 75% of respondents consider occupancy costs a major factor in workplace decisions.
However, 40% plan to renew existing leases, while 29% intend to maintain their current office footprint. The findings indicate that many occupiers are seeking to improve the value and performance of their existing spaces rather than reduce their overall office requirements.
Mike Davis, managing director, Occupier Services, Asia Pacific at Colliers, said workplace strategies were increasingly being assessed against their contribution to productivity, collaboration, innovation and business performance.
He noted that companies were focusing on measurable business outcomes by aligning workplace, technology and talent strategies.
Talent and cost efficiency drive location choices
Access to talent, operational cost efficiency and workforce concentration remain key considerations for companies selecting office locations across Asia-Pacific. These factors continue to outweigh geopolitical considerations in many workplace decisions, although geopolitical risks remain part of the broader operating environment.
For India, the findings point to continued opportunities in the office market as companies expand operations, compete for skilled workers and invest in higher-quality workplaces. The growing emphasis on workplace experience and efficiency is also expected to influence leasing decisions, office upgrades and space planning across the region.
