Singapore has retained its position among the world’s top 10 most expensive prime office markets, according to Savills’ latest Prime Office Costs report. The city-state ranks 10th globally for annual net effective occupier costs, highlighting its status as a leading business hub in the Asia-Pacific region. The report also reveals that expansionary leasing accounted for 58% of major office transactions globally in the first half of 2026, indicating growing confidence among occupiers.
The global prime office leasing volumes remained stable in the first half of 2026, with expansionary deals making up the majority of activity. Only 5% of top office deals involved occupiers reducing space, whilst 37% were relocating or renewing at a similar footprint, down from 44% in the latter half of 2025. Flexible office providers led the expansion, with 78% of their deals representing growth within existing markets.
AI companies have emerged as a significant force in the prime global office market, accounting for 17% of all prime technology sector deals in the first half of 2026, a substantial increase from 3% in 2024. Savills notes that every AI-related deal was expansionary, driven by rapid growth and increased demand for talent. This trend is particularly pronounced in innovation clusters like San Francisco, Seattle, and London’s West End.
Alan Cheong of Savills Singapore commented on the local market, noting the resilience of the higher-grade office sector amidst limited new developments. Rick Schuham of Savills highlighted the continued demand for premium offices, whilst Sarah Brooks pointed out the growing influence of AI and technology firms in absorbing high-quality space globally.
