Delhi's Real Estate Rebounds: Master Plan and New Supply Boost Growth
Delhi's real estate market is poised for significant growth with the implementation of a new master plan and increased supply of office and residential spaces. The city aims to reorganize unauthorized colonies and tap into its untapped land potential.
Real EstateMaster PlanDelhiNcrOffice SpaceReal EstateSep 15, 2025
Anand Kumar, the chairman of the Real Estate Regulatory Authority (RERA) for Delhi, highlights the city's abundant land resources and the lack of a coherent land use change policy. This has led to unauthorized construction, which has become a significant impediment to the city's development. The new master plan aims to address this issue by offering a policy for the reorganization of unauthorized colonies and the redevelopment of old buildings and societies.
The reorganization of these areas, combined with planned infrastructure improvements, is expected to breathe new life into Delhi's real estate market. According to Anshuman Magazine, chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, the real estate sector is crucial for creating jobs and unlocking Delhi's economic potential. He emphasizes that there is no longer a competition between the cities in the National Capital Region (NCR) as they are becoming self-sustainable in terms of real estate demand.
CBRE reports that the office space supply in Delhi has been limited since 2016 due to a scarcity of developable land. However, this trend is expected to reverse, with the market projected to add approximately 5 million square feet of new office space between 2025 and 2027. Delhi's strong economic potential has not only helped the property market recover but has also set it on a path of steady, high-quality growth.
From January to June 2025, Delhi recorded an office space absorption of about 400,000 square feet, driven by strong business confidence in core business districts. The leading sectors driving this demand were research, consulting, and analytics, which accounted for 39% of the total leasing activity. Flexible space operators and the BFSI (Banking, Financial Services, and Insurance) sector followed with 23% and 18% respectively, collectively contributing to around 80% of the total leasing activity during the six-month period.
On the retail front, Delhi also saw a healthy absorption of about 230,000 square feet, with high streets accounting for 72% of the total leasing. Fashion and apparel retailers led the demand with a 35% share, followed by homeware and department stores (20%) and food and beverage operators (17%). This trend underscores the growing popularity of lifestyle-driven and experiential retail formats across key locations.
In the residential sector, the Delhi-NCR market has demonstrated robust growth in H1 2025, particularly in the luxury segment. The region witnessed about 21,000 new launches, marking a 35% increase year-on-year, and an equally healthy sales volume of over 21,000 units. High-end (31%), premium (26%), and luxury (18%) segments together accounted for 75% of total sales, indicating a strong appetite for high-quality residential properties.
Delhi's real estate sector is on a trajectory of sustained growth, driven by a combination of progressive policies, visionary urban planning, and cutting-edge technology. The implementation of the new master plan and the reorganization of unauthorized colonies are expected to unlock the city's land potential and foster a more sustainable and prosperous real estate market.
Frequently Asked Questions
What is the main issue that has hindered Delhi's real estate development?
The main issue has been the lack of a coherent land use change policy, which has led to unauthorized construction and hindered the city's development.
What does the new master plan aim to address in Delhi?
The new master plan aims to reorganize unauthorized colonies and redevelop old buildings and societies, addressing the issues of unauthorized construction and infrastructure improvements.
How much new office space is expected to be added in Delhi by 2027?
Delhi is expected to add approximately 5 million square feet of new office space between 2025 and 2027.
Which sectors are driving the demand for office space in Delhi?
The leading sectors driving the demand for office space in Delhi are research, consulting, and analytics, followed by flexible space operators and the BFSI sector.
What is the trend in the residential market in Delhi-NCR?
The residential market in Delhi-NCR is showing robust growth, particularly in the luxury segment, with a strong appetite for high-end, premium, and luxury residential properties.
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