Delhi-NCR Leads Home Price Growth in 2025; Mumbai Maintains Top Housing Market Position

Delhi-National Capital Region (NCR) recorded its second-highest annual gross office leasing in 2025, while its average home prices climbed 19% (on-year), according to a report by Knight Frank India.

Mumbai continued to show resilience, remaining the largest player in the housing market and posting the second-strongest year for office leasing in over a decade. Despite the challenges, the city's robust infrastructure and economic strength supported its position as a key real estate hub.

On the residential front, Delhi-NCR entered a phase of measured normalisation. Annual sales eased by 9% year-over-year (YoY) to 52,452 units, even as average home prices climbed 19% YoY to Rs 6,028 per square foot. This growth was primarily driven by premiumisation in Gurugram, where high-end developments and improved infrastructure attracted a significant number of buyers.

NCR recorded its second-highest annual gross office leasing at 11.3 million square feet in 2025, even as volumes eased 11% YoY from the prior year's peak. The region accounted for 13% of India's total leasing. In the second half of 2025, leasing in NCR stood at 4.1 million square feet, down 42% YoY due to strong base effects and limited Grade A availability. The completions rose to 9.6 million square feet for the year, the highest since 2019.

Gurugram led NCR activity, contributing 61% of annual transactions. Noida gained momentum from improving infrastructure and the near start of operations at Jewar airport, which is expected to further boost the region's attractiveness for both residential and commercial developments.

Mumbai posted its second-strongest year for office leasing in over a decade, with 9.8 million square feet transacted in 2025, a 5% decrease YoY. The second half of the year saw volumes of 4.3 million square feet, supported by large-format deals in scalable suburban locations. Global Capability Centres' share rose to 27% in the second half of the year, up 9% YoY, while India-facing occupiers accounted for 40% of demand.

In Delhi, demand continued to be driven by India-facing businesses, which accounted for 35% of annual transactions, followed closely by Global Capability Centres (GCCs) at 26%. Grade A assets dominated demand across both regions, making up 84% of transactions in Delhi.

Mudassir Zaidi, Executive Director – North, Knight Frank India, commented, “With a robust pipeline of high-quality supply and improving infrastructure connectivity, office market fundamentals remain firmly supportive of long-term growth.” In Delhi-NCR, the average transacted office rents also rose 10% YoY during the year, supported by tight availability in prime Grade A micro-markets.