Delhi's Real Estate Renaissance: Master Plan and New Supply Boost NCR Market
Delhi's real estate market is poised for growth with the implementation of a new master plan and an increase in office and residential supply. The city aims to reorganize unauthorized colonies and meet the growing demand driven by strong business confidence.
Real EstateMaster PlanNcrOffice SpaceLuxury ResidentialReal Estate NewsSep 15, 2025
According to Anand Kumar, chairman of the Real Estate Regulatory Authority (RERA) for Delhi, the city has ample land available, but the lack of a land use change policy has led to unauthorized construction. “Unauthorised construction has become a bane to Delhi’s development. The new master plan could offer a policy of reorganisation of these unauthorised colonies and redevelopment of the societies and buildings that are old,” Kumar said at a CII event in Delhi.
The implementation of the long-delayed Master Plan of Delhi is expected to bring about significant changes. This, combined with the infrastructure planned in and around the capital, will help the real estate sector thrive. Anshuman Magazine, chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, emphasized the importance of the master plan in unlocking Delhi's potential. “To create more jobs, Delhi needs the real estate sector to thrive. Now, there is no competition between the cities in NCR and they are self-sustainable cities when it comes to the real estate demand. Master plan will help unlock the potential of Delhi,” Magazine said.
The office supply in the capital has been limited since 2016, primarily due to a scarcity of developable land. However, this trend is set to change, with the market expected to add approximately 5 million sq ft of new office space between 2025 and 2027. “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,” Magazine added.
From January to June 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% share), followed by flexible space operators (23%) and BFSI (18%), collectively contributing to around 80% of total leasing activity in the six-month period.
On the residential front, the Delhi-NCR market has demonstrated 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.
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 new master plan and the expected increase in office and residential supply are poised to reinvigorate the market and position Delhi as a leading real estate hub in the NCR region.
Frequently Asked Questions
What is the main issue with Delhi's real estate market?
The main issue with Delhi's real estate market has been the lack of a land use change policy, leading to unauthorized construction and limiting the city's development potential.
What is the expected office space addition in Delhi by 2027?
Delhi is expected to add approximately 5 million sq ft of new office space between 2025 and 2027.
How is the luxury residential market performing in Delhi-NCR?
The luxury residential market in Delhi-NCR has shown robust growth, with about 21,000 new launches and sales in the first six months of 2025, dominated by high-end, premium, and luxury segments.
What sectors are driving office space demand in Delhi?
The leading sectors driving office space demand in Delhi are research, consulting, and analytics (39%), followed by flexible space operators (23%) and BFSI (18%).
What is the significance of the new master plan for Delhi?
The new master plan for Delhi is significant as it aims to reorganize unauthorized colonies, redevelop old buildings, and unlock the city's potential, thereby boosting the real estate sector and creating more jobs.
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