Delhi's Real Estate Renaissance: Thriving Office, Retail, and Housing Markets
Delhi's real estate market is experiencing a significant resurgence, driven by the Delhi Master Plan 2041, policy support, and increased investor confidence. The city is poised to become one of India's most attractive property markets across office, residential, and retail segments.
Delhi Real EstateOffice MarketResidential MarketRetail MarketMaster Plan 2041Real Estate NewsSep 15, 2025
The report, “Delhi 2041: Shaping the Future of Real Estate,” released by CBRE South Asia Pvt. Ltd. in partnership with the Confederation of Indian Industry (CII), paints a picture of a city on the cusp of transformation. The findings were unveiled at the 2nd CII Delhi Real Estate Summit 2025.
Office Market: Supply Returns After a Decade
Delhi’s office supply has been constrained since 2016 due to limited developable land. But the tide is turning. Between 2025 and 2027, the market is expected to add 5 million sq. ft. of new office space, breaking a decade-long lull.
Absorption in H1 2025: Around 400,000 sq. ft., driven mainly by research, consulting, and analytics firms (39%), flexible space operators (23%), and BFSI (18%).
Why this matters: The return of fresh supply comes at a time when global companies are expanding in India, ensuring Delhi remains a prime destination for corporate growth.
CBRE’s Chairman & CEO, Anshuman Magazine, summed it up: “New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability, and design. The city is becoming more affluent, with stronger regulations and investor confidence driving growth.”
Retail Real Estate: Lifestyle & Luxury Take the Lead
Delhi’s retail sector is riding on rising disposable incomes and global brand entries.
Absorption in H1 2025: About 230,000 sq. ft. of retail space leased, with 72% of activity concentrated on high streets.
Sector demand breakdown:
- Fashion & apparel: 35%
- Homeware & department stores: 20%
- Food & beverage: 17%
Lifestyle-driven, experiential retail is gaining traction, and with more luxury brands entering the market, demand for premium spaces is expected to remain strong.
Residential: Luxury & Premium Housing Boom
Delhi-NCR’s housing market has seen a dramatic shift in the first half of 2025, dominated by high-end buyers.
New launches: 21,000 units, 35% higher year-on-year.
Sales: 21,000 units, matching new launches.
Breakdown of sales:
- High-end homes (₹1.5–3 crore): 31%
- Premium (₹3–6 crore): 26%
- Luxury (₹6–50 crore): 18%
Together, these accounted for 75% of all sales. Capital values, especially in South-East and South-West Delhi, have surged on the back of strong demand and limited supply. Upcoming infrastructure projects – like metro network extensions and new expressways – are set to unlock new growth corridors, making peripheral areas investment-friendly.
Policy & Planning: The Master Plan 2041 Advantage
At the heart of this optimism lies the Delhi Master Plan 2041. The policy framework:
- Integrates rural areas into urban growth.
- Prioritises affordable housing alongside premium supply.
- Strengthens governance with DLRERA to ensure transparency and investor protection.
- Supports sustainability and livability as core pillars of urban planning.
The Supreme Court’s recent emphasis on protecting homebuyers’ rights and RERA reforms add another layer of security, ensuring developers are held accountable.
What This Means for Investors & Homebuyers
Office Investors: With 5 million sq. ft. of supply entering the market, Delhi’s office real estate is poised for a comeback. Good news for REIT investors and those eyeing commercial property.
Retail Opportunities: High street retail remains hot, and the entry of luxury brands boosts long-term value for retail property buyers.
Residential Buyers: The luxury segment is dominating, but capital appreciation in peripheral areas may offer better value for long-term investors.
Key points to note:
- 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% share), followed by flexible space operators (23%) and BFSI (18%), collectively contributing to around 80% of total leasing activity in the six-month period.
- In the first half of the calendar year, Delhi also recorded a healthy retail space absorption of about 230,000 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 further strengthened by rising disposable incomes and the entry of global luxury brands. 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.
Frequently Asked Questions
What is the Delhi Master Plan 2041?
The Delhi Master Plan 2041 is a comprehensive policy framework designed to guide the development of Delhi until 2041. It focuses on integrating rural areas into urban growth, prioritizing affordable housing, and ensuring sustainability and livability.
How much new office space is expected to be added in Delhi between 2025 and 2027?
Delhi is expected to add 5 million sq. ft. of new office space between 2025 and 2027, breaking a decade-long lull in office supply.
Which 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%), followed by flexible space operators (23%) and BFSI (18%).
What is the trend in the retail sector in Delhi?
Delhi's retail sector is experiencing strong growth, driven by rising disposable incomes and the entry of global luxury brands. High street retail remains hot, and demand for premium spaces is expected to remain strong.
What is the current trend in the residential market in Delhi-NCR?
The residential market in Delhi-NCR has seen a dramatic shift towards high-end and luxury homes, with 75% of sales in the first half of 2025 dominated by high-end, premium, and luxury segments.
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