Delhi NCR’s office market sees 4.2 million sq ft gross leasing volume in Q1 2025, up 4.4% y-o-y

• In Q1 2025, gross leasing totalled 4.2 million sq ft. The IT/ITeS sector accounted for 34% of leasing activity, followed by Telecom, Healthcare-Biotech and Real Estate & Construction collectively at 20%. Flexible space operators contributed 18.5% of the total volume.
• In Q1, net absorption reached 3.7 million sq ft, up 62% y-o-y and 29% q-o-q. Gurgaon (69%) and Noida (27%) held the largest share across submarkets. The NH-8 submarket recorded the highest net absorption at 31%, followed by the Noida-Greater Noida Expressway at 18%.

Delhi NCR office market adds 2.8 million sq ft of supply

• In Q1 2025, a total of 2.8 million sq ft of new office space entered the market, pushing Grade A stock to nearly 157.8 million sq ft. Gurgaon contributed a dominant 72% share, while Noida accounted for the remaining 28%.
• Q1 2025 saw two key additions to Delhi NCR’s office market: DLF Downtown Block 4 with nearly 2 million sq ft in Gurgaon and Bhutani Alphathum Tower A with 0.7 million sq ft in Noida. By end-2025, total supply of 8.8 million sq ft is expected to come onstream.

Delhi NCR records a 2% q-o-q increase

• Delhi-NCR saw Grade A office rent hikes in Q1 2025. Strong net absorption and pre-commitments drove developers to raise future phase prices, signalling a positive market outlook.
• Recent strong leasing activity signalled potential near-term rent hikes. Demand was predominantly driven by a mix of tenants: the flexible workspace sector, technology companies and financial institutions.

Outlook: Robust leasing activity is expected to continue in 2025

• Quality office projects in key areas, developed by leading developers and institutional owners, are set to drive leasing momentum and rent appreciation. Net absorption is projected to reach 9.0-9.5 million sq ft by year-end 2025.
• Delhi NCR’s office sector thrives with positive trends, premium developments and strong demand. Improved inter-submarket connectivity is likely to boost investment in the region’s commercial real estate.