Delhi-NCR Leads Home Realty Price Growth in 2025; Mumbai Remains Largest Housing Market
New Delhi, January 9 (IANS) – Delhi-National Capital Region (NCR) witnessed significant real estate growth in 2025, recording its second-highest annual gross office leasing and a 19% increase in average home prices. According to a report by Knight Frank India, Mumbai continued to show resilience, remaining the largest player in the housing market and experiencing its second-strongest year for office leasing in over a decade.
On the residential front, Delhi-NCR entered a phase of measured normalisation. Annual sales eased 9% YoY to 52,452 units, even as average home prices climbed 19% YoY to Rs 6,028 per sq ft, driven by premiumisation in Gurugram. The region recorded its second-highest annual gross office leasing at 11.3 million sq ft in 2025, despite a 11% YoY decrease from the prior year’s peak. It accounted for 13% of India’s total leasing. H2 2025 leasing in NCR stood at 4.1 million sq ft, down 42% YoY due to a strong base and limited Grade A availability. The completions rose to 9.6 million sq ft for the year, the highest since 2019.
Gurugram led NCR activity, contributing 61% of annual transactions. Noida gained from improving infrastructure and the near start of operations at Jewar airport. Mumbai posted its second-strongest year for office leasing in over a decade, with 9.8 million sq ft transacted in 2025 (-5% YoY). H2 2025 volumes were 4.3 million sq ft, 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.
“With a robust pipeline of high-quality supply and improving infrastructure connectivity, office market fundamentals remain firmly supportive of long-term growth,” said Mudassir Zaidi, Executive Director – North, Knight Frank India.
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.
