Delhi’s Office Market Set for Major Expansion: 5 Million Sq. Ft. of New Space in 2 Years
Delhi's office market is poised to see a significant addition of around 5 million square feet of new office space between 2025 and 2027, marking a shift from a decade of limited supply. This growth is driven by progressive policies, urban planning, and robust demand from various sectors.
Delhi Real EstateOffice SpaceCbreCiiDelhi Master Plan 2041Real Estate NewsSep 15, 2025
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.
Frequently Asked Questions
What is the expected addition to Delhi's office market between 2025 and 2027?
Delhi's office market is expected to add around 5 million square feet of new office space between 2025 and 2027.
What sectors are driving the demand for office space in Delhi?
The leading sectors driving demand for office space in Delhi are research, consulting, and analytics (39% share), followed by flexible space operators (23%) and BFSI (18%).
How has the residential market in Delhi-NCR performed in H1 2025?
In H1 2025, the residential market in Delhi-NCR has seen robust growth with about 21,000 new launches, 35% higher year-on-year, and equally healthy sales of over 21,000 units, dominated by luxury units.
What is the Delhi Master Plan 2041 and how does it impact real estate?
The Delhi Master Plan 2041 is the government’s blueprint for urban expansion, focusing on rural areas and prioritizing affordable housing. It is guiding future growth and making peripheral areas more attractive for development and investment.
What factors are contributing to the growth of the retail sector in Delhi?
The growth of the retail sector in Delhi is being driven by rising disposable incomes and the entry of global luxury brands. The availability of premium spaces and the strong demand for retail leasing are expected to continue in the coming quarters.
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