Delhi NCR’s office sector reaches record high: 2024 sees the highest Gross Leasing Volume at 17.7 million sq ft

• In 2024**, **gross leasing totalled 17.7 million sq ft Flexible spaces operators comprised 35.9% of the total, followed by IT/ITeS (19.6%), Manufacturing (12.7%) and BFSI (11.5%). Compared to 2023, this indicates an annual uptrend of 27.2%.
• In 2024, net absorption reached 9.4 million sq ft, up 30% y-o-y. Gurgaon (63%) & Noida (33%) had the highest share across submarkets. The GCR Extension & Noida-Greater Noida Expressway saw significant occupier interest in 2024. Q4 net absorption was 2.84 million sq ft.

Delhi NCR office market supply stands at 5.6 million sq ft

• In Q4 2024, new supply of 1.9 million sq ft was added, pushing Grade A stock to nearly 155 million sq ft Gurgaon, Noida and SBD Delhi saw an infusion of new supply.
• Annual completions totalled 5.6 million sq ft, with Gurgaon dominating at 74%, followed by Noida (21%) and SBD Delhi (5%). Quality projects from major developers and institutional owners are slated for the next five years.

Annual rental increase of 5% recorded in Delhi NCR

• Q4 2024 saw Grade A office rents increase across Delhi NCR. Encouraged by solid pre-commitments throughout the year, major developers raised pricing for future phases, indicating a positive market trajectory.
• The robust leasing activity in recent months serves as a strong indicator of potential rent increases in the near term. Demand is primarily driven by a diverse mix of tenants, including flexible workspace operators, technology companies and financial institutions.

Outlook: Leasing momentum to maintain strong pace 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 8.3-8.4 million sq ft by year-end 2025.
• Positive market trends, high-quality upcoming inventory, solid tenant uptake and improving connectivity are enhancing the attractiveness of various submarkets. This is expected to attract investors to Delhi NCR’s office sector.