Delhi’s Office Market Set for Major Expansion: 5 Million Sq. Ft. of New Space in 2 Years
Expected to see a sharp uptick in supply over the next two years, Delhi's office market could add around 5 million sq. ft. of new office space between 2025 and 2027, despite a decade-long period of limited and intermittent supply, according to a report. This will mirror the success seen by Delhi-NCR’s residential market, which has seen robust growth in H1 2025 with high-end units dominating the market at 31%.
Real estate consultancy major CBRE’s joint report with the Confederation of Indian Industry (CII), ‘Delhi 2041: Shaping the Future of Real Estate’, highlights the growth potential of Delhi’s office real estate market. The report underscores the shift in focus from just location to amenities, sustainability, and design among new homebuyers and business owners. Anshuman Magazine, Chairman & CEO - India, CBRE, emphasizes this change, stating, “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.”
Delhi’s real estate sector is on a trajectory of sustained growth, driven by progressive policies, better urban planning, and cutting-edge technology. Government initiatives and regulatory oversight from bodies such as Delhi RERA (DLRERA) are fostering transparency and attracting investors, the report adds. This momentum is further bolstered by the Delhi Master Plan 2041, the government’s blueprint for urban expansion that focuses on rural areas and prioritises affordable housing.
During January to June (H1 2025), Delhi recorded an office space absorption of around 400,000 sq. ft., driven by business confidence in core business districts. The leading sectors driving this demand were research, consulting, and analytics (39% share), followed by flexible space operators (23%) and BFSI (18%), collectively contributing to around 80% of total leasing activity in the six months.
In the first half of the calendar year, Delhi also recorded a retail space absorption of about 2,30,000 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%). These trends have been strengthened by rising disposable incomes and the entry of global luxury brands, says the report. “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.”
On the residential front, too, 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 equally healthy sales of over 21,000 units. High-end (31%), premium (26%), and luxury (18%) segments together accounted for 75% of total sales. Led by strong demand and restricted supply, capital values, particularly in South-East and South-West Delhi, have seen significant appreciation. Major infrastructure projects, including metro network expansions and new expressways, are poised to make peripheral areas more attractive for development and investment.
