Singapore loses ground as office cost growth lags rivals: Savills

Net effective occupancy costs in Singapore — which include rent and fit-out expenses — rose by 1% in Q1 2025.

Singapore’s prime office market saw a moderate cost increase in the first quarter of 2025, yet fell three spots in Savills’ global rankings to 9th place, as faster-growing markets pushed ahead.

According to Savills’ latest Prime Office Costs report, net effective occupancy costs in Singapore — which include rent and fit-out expenses — rose by 1% in Q1 2025.

However, this increase was outpaced by sharper growth in cities like Riyadh and Mumbai, causing Singapore to slip in the global index.

“Although Singapore’s ranking has fallen to 9th place, the underlying cost is still increasing, albeit at a lower rate,” said Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore.

“For 2025, we may still see cost increases as the supply of CBD Grade A offices is limited. However, we expect our rankings to hover around the same level as in Q1/2025,” he added.

The report noted that whilst Asia-Pacific markets posted modest average growth of 0.1%, cities such as Mumbai surged with a 5.2% increase, driven by low vacancy rates. In contrast, China saw cost declines amid economic softness.

Despite the dip in rank, Singapore remains a high-cost market for prime office space. The ongoing squeeze on premium-grade supply in the central business district is expected to keep rents elevated through the year.