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Despite global uncertainty, Delhi-NCR’s commercial real estate market remains strong with high office space demand, especially in Gurugram, Noida, and Faridabad.
Delhi-NCR recorded 9.4 million sq ft of net absorption in 2024, with 2.9 million sq ft absorbed in Q4 alone.
Despite global macroeconomic uncertainty, the commercial real estate market in Delhi-NCR has remained resilient, with strong office space demand and sustained investor interest. The first quarter of 2025 maintained solid momentum, underpinned by large deal closures and fresh leasing activity.
According to a report by Cushman & Wakefield, the top eight Indian cities recorded a gross leasing volume (GLV) of 20.3 million sq ft (MSF) in Q1 2025, marking a 4.5% year-on-year increase, although down 15% compared to the strong leasing seen in the previous quarter. Bengaluru led with a 24% share, followed by Mumbai (21%), Pune (17%), and Delhi-NCR (14%).
Delhi-NCR: A Key Office Market Hub
Delhi-NCR has cemented its position as a prime office space hub for multinational corporations (MNCs) and Global Capability Centres (GCCs), thanks to its strategic location, world-class infrastructure, and improving business ecosystem. Leasing activity remained strong across major corridors including Gurugram, Noida, and Faridabad.
Demand has been particularly robust for Grade A office spaces offering superior amenities, sustainability certifications, and modern infrastructure. The rise of hybrid work models has also shaped leasing preferences, with companies gravitating toward flexible, scalable spaces that allow for collaboration while supporting remote work.
Mohit Goel, MD, Omaxe Group, said, “Delhi-NCR’s office market continues its upward trajectory, driven by infrastructure upgrades, booming services sector, and sustained demand from multinational corporations and global capability centres. While Gurugram and Noida have long dominated the narrative, cities like Faridabad are increasingly standing out as emerging commercial hotspots.”
“We’re seeing a surge in interest from MNCs and domestic enterprises seeking premium office spaces that balance connectivity, affordability, and quality. Besides, the upcoming Noida International Airport is a game-changer, enhancing Faridabad’s accessibility and investor appeal.”
Gurugram: Centre of Gravity for Premium Office Spaces
Gurugram continues to attract strong interest from global firms that prioritise quality, infrastructure, and proven delivery records.
Ishaan Singh, director of AIPL, said, “Demand for Grade A offices has remained strong in Gurugram, particularly for buildings with a proven track record of timely delivery. Global firms are becoming selective, not just in location but in the quality of buildings. We’re seeing higher absorption in premium spaces that tick these boxes.”
Flight to quality is real; tenants are willing to pay a premium for future-proof assets. Hence, we expect leasing in Gurugram’s Grade A segment to accelerate further, Singh added.
Sandeep Chhillar, founder and chairman of Landmark Group, said, “With Grade A commercial developments, superior connectivity, and well-established business districts in place, Gurugram offers the infrastructure and ecosystem global occupiers and new-age employees seek. With continuous infra upgradation and planned connectivity, Gurugram’s attractiveness strengthens further.”
Net Absorption and Sectoral Drivers
According to JLL, Delhi-NCR recorded 9.4 million sq ft of net absorption in 2024, with 2.9 million sq ft absorbed in Q4 alone. This was largely driven by expansion from GCCs and MNCs, particularly in sectors such as IT/ITeS, BFSI, and startups. These sectors together accounted for 56% of gross leasing activity across India in 2024.
The shift toward managed and flexible office formats is another growing trend. Occupiers are increasingly looking for spaces that allow scalability, integrated technology, and employee well-being.
Salil Kumar, director (sales & marketing) of CRC Group, said, “Modern office spaces are undergoing a fundamental transformation, with mixed-use developments emerging as the preferred choice for global occupiers. In Noida, especially Noida Expressway, we’re witnessing rising demand for integrated environments that seamlessly combine office spaces with retail, hospitality, and leisure amenities.”
Investment Momentum and Infrastructure Tailwinds
Investor sentiment toward Delhi-NCR’s commercial real estate continues to be positive, buoyed by stable returns, strong REIT performance, and institutional interest. Private equity inflows have remained steady as investors view India’s commercial real estate as both a hedge against inflation and a strong component of diversified Asia-Pacific portfolios.
Key infrastructure projects such as the Dwarka Expressway and Delhi–Mumbai Expressway are driving growth in micro-markets like Gurugram and Noida, improving regional connectivity and enhancing the investment appeal of income-generating, Grade A assets.
Viineet Chellani, founder and CEO of Asset Deals, said, “Investors are actively scouting Delhi-NCR’s office market, favouring stabilised, income-generating assets with long-term leases. Despite global turbulence, there’s an appetite for premium office properties offering significant yields.”
The leasing side remains healthy, with occupiers consolidating into well-managed, Grade A spaces. Thus, we foresee solid growth in NCR’s micro-markets where infrastructure tailwinds will unlock rental growth and capital appreciation in the coming years, Chellani added.
Outlook
Delhi-NCR continues to be a pivotal destination for commercial real estate, attracting both occupiers and investors with its combination of robust demand, improving infrastructure, and evolving workspace models. As businesses reimagine their workplace strategies, the region’s commercial hubs — particularly Gurugram, Noida, and Faridabad — are well-positioned to offer experience-driven, future-ready office environments aligned with the dynamic needs of global and domestic enterprises.
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