Delhi Office Market Set for 5 Million Sq Ft Supply Surge After Decade-Long Lull
Delhi's office real estate market is set to see a significant boost with about 5 million sq ft of new space expected to come up in key areas, driven by strong demand from research, consulting, and analytics sectors.
Delhi Office MarketReal EstateCommercial SupplyCbreDelhi Master Plan 2041Real EstateSep 15, 2025
The upcoming supply will be concentrated in Netaji Subhash Place, Rohini, Gateway District, and Aerocity, CBRE Research showed.
During January–June 2025, Delhi recorded about 400,000 sq ft of office space absorption, driven by strong business confidence in core districts. The top demand drivers were research, consulting, and analytics (39%), flexible space operators (23%), and BFSI (18%), together accounting for nearly 80% of leasing activity, the report titled Delhi 2041: Shaping the Future of Real Estate said.
In the first half of the calendar year, Delhi also recorded a healthy retail space absorption of about 230,000 sq. ft., with high streets accounting for 72% of the total leasing. Fashion and apparel retailers demonstrated the highest demand with a 35% share, followed by homeware and department stores (20%) and food and beverage operators (17%), underscoring the growing popularity of lifestyle-driven and experiential retail formats across key locations, it showed.
These trends have been further strengthened by rising disposable incomes and the entry of global luxury brands. With the growing availability of premium spaces and more brands looking to enter the capital city, the momentum of retail leasing is expected to remain strong in the coming quarters, the report said.
Delhi’s office real estate market features a blend of premium office spaces and a rapidly expanding ecosystem of flexible space operators. The Central Business District (CBD) and SBD (2 and 3) are prominent micro-markets, attracting companies that seek a central and prestigious business address, typically commanding premium rentals.
This new supply would be concentrated in the SBD 2 and 3 micro-markets, driven by the completion of key projects such as Worldmark 4, 5 and 6 and Prestige Trade Centre, the report noted.
The backbone of Delhi’s economy is the services sector. Major services industries include Information Technology (IT), Telecommunications, Banking, Insurance, and Financial Services (BFSI), Real Estate, Tourism, and Education. Delhi’s strategic role as the national capital also fuels strong public sector employment and government services. The city’s strategic location, well-developed transportation network, and a skilled workforce further amplify its economic potential, attracting business from across the globe, the report said.
“Delhi’s strong economic potential has helped its property market not just to bounce back, but also start on a path of steady, high-quality growth,” said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.
“New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability, and design. This change shows that the city is becoming more affluent and that people want a better quality of life. The market is also becoming more mature, thanks to strong and clear regulations. This has given people a lot of confidence and attracted significant investment. With the Delhi Master Plan 2041 guiding future growth, the city is ready to play a pivotal role in India’s real estate story,” he said.
On the residential front, Delhi-NCR’s market has demonstrated a robust growth in H1 2025, dominated by luxury units. In the first six months, the region witnessed about 21,000 new launches, 35% higher year-on-year, and an equally healthy sales of over 21,000 units. High-end (31%), premium (26%), and luxury (18%) segments together accounted for 75% of total sales, the report showed.
Led by strong demand and restricted supply, capital values, particularly in South-East and South-West Delhi, have also witnessed significant appreciation. Major infrastructure projects, including metro network expansions and new expressways, are poised to make peripheral areas more attractive for development and investment, it added.
Frequently Asked Questions
What is the expected supply of new office space in Delhi?
Delhi is expected to see about 5 million sq ft of new office space between 2025 and 2027.
Which areas will see the most new office space in Delhi?
The new office space will be concentrated in Netaji Subhash Place, Rohini, Gateway District, and Aerocity.
What are the main demand drivers for office space in Delhi?
The top demand drivers are research, consulting, and analytics (39%), flexible space operators (23%), and BFSI (18%).
How has the retail space market in Delhi performed in the first half of 2025?
Delhi recorded a healthy retail space absorption of about 230,000 sq. ft. in the first half of 2025, with high streets accounting for 72% of the total leasing.
What is the significance of the Delhi Master Plan 2041 for the real estate market?
The Delhi Master Plan 2041 is guiding future growth and making the city more attractive for development and investment, particularly in peripheral areas.
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