Delhi's Office Market Set for Major Expansion, Expected to Add 50 Million Sq Ft by 2027
Delhi’s office real estate market is on the verge of a significant expansion, with projections indicating the addition of approximately 50 million square feet of new office space by 2027. This growth is driven by progressive policies, urban planning, and technological advancements.
Delhi Real EstateOffice SpaceUrban PlanningInvestmentLuxury HousingReal Estate NewsSep 15, 2025
The real estate sector in the national capital has picked up a trajectory of sustained growth, driven by a combination of progressive policies, visionary urban planning, and cutting-edge technology.
Government initiatives and regulatory oversight from bodies such as Delhi RERA (DLRERA) are fostering a new era of transparency, enhancing the city’s attractiveness to investors, CBRE said in a joint report with the Confederation of Indian Industry (CII).
This momentum is further bolstered by the 'Delhi Master Plan 2041', the government’s comprehensive blueprint for urban expansion, which integrates rural areas and prioritises affordable housing.
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, said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE.
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.
During January to June (H1 2025), Delhi recorded an office space absorption of approximately 400,000 sq. ft., driven by strong business confidence in core business districts.
The leading sectors driving this demand were research, consulting, and analytics (39 per cent share), followed by flexible space operators (23 per cent) and BFSI (18 per cent), collectively contributing to around 80 per cent of total leasing activity in the six months.
In H1 2025, Delhi also recorded a healthy retail space absorption of about 230,000 sq. ft., with high streets accounting for 72 per cent of the total leasing.
Fashion and apparel retailers demonstrated the highest demand with a 35 per cent share, followed by homeware and department stores (20 per cent) and food and beverage operators (17 per cent), underscoring the growing popularity of lifestyle-driven and experiential retail formats across key locations, the report noted.
On the residential front, Delhi-NCR’s market has demonstrated a robust growth in the first half of this year, dominated by luxury units.
In the first six months, the region witnessed about 21,000 new launches, 35 per cent higher year-on-year, and equally healthy sales of over 21,000 units. High-end (31 per cent), premium (26 per cent), and luxury (18 per cent) segments together accounted for 75 per cent of total sales.
Frequently Asked Questions
What is the projected growth in Delhi's office real estate market?
Delhi’s office real estate market is expected to add approximately 50 million square feet of new office space by 2027.
What factors are driving the growth in Delhi's real estate sector?
The growth is driven by progressive policies, visionary urban planning, and cutting-edge technology, along with government initiatives and regulatory oversight from bodies such as Delhi RERA (DLRERA).
What is the 'Delhi Master Plan 2041'?
The 'Delhi Master Plan 2041' is the government’s comprehensive blueprint for urban expansion, which integrates rural areas and prioritizes affordable housing.
Which sectors are driving the demand for office space in Delhi?
The leading sectors driving demand are research, consulting, and analytics (39 per cent), followed by flexible space operators (23 per cent) and BFSI (18 per cent).
How has the residential market in Delhi-NCR performed in the first half of 2025?
In the first six months of 2025, the region witnessed about 21,000 new launches, 35 per cent higher year-on-year, and equally healthy sales of over 21,000 units, with high-end, premium, and luxury segments dominating the market.
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