Delhi's office market picks up momentum, projected to add 50 mn sq ft by 2027

New Delhi, Sep 15 (IANS) Delhi’s office real estate market is poised to witness a sharp uptick in supply -- expected to add approximately 5 million square feet of new office space over the next two years, a report said on Monday.

The real estate sector in the national capital has picked up a trajectory of sustained growth, driven by a combination of progressive policies, visionary urban planning, and cutting-edge technology.

"Government initiatives and regulatory oversight from bodies such as Delhi RERA (DLRERA) are fostering a new era of transparency, enhancing the city’s attractiveness to investors," CBRE said in a joint report with Confederation of Indian Industry (CII).

This momentum is further bolstered by the 'Delhi Master Plan 2041', the government’s comprehensive blueprint for urban expansion, which integrates rural areas and prioritises affordable housing.

“New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability and design. This change shows that the city is becoming more affluent and that people want a better quality of life," said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE.

This has given people a lot of confidence and attracted significant investment. With the 'Delhi Master Plan 2041' guiding future growth, the city is ready to play a pivotal role in India’s real estate story, he said.

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 per cent share), followed by flexible space operators (23 per cent) and BFSI (18 per cent), collectively contributing to around 80 per cent of total leasing activity in the six months.

In H1 2025, Delhi also recorded a healthy retail space absorption of about 230,000 sq. ft., with high streets accounting for 72 per cent of the total leasing.

Fashion and apparel retailers demonstrated the highest demand with a 35 per cent share, followed by homeware and department stores (20 per cent) and food and beverage operators (17 per cent), underscoring the growing popularity of lifestyle-driven and experiential retail formats across key locations, the report noted.

On the residential front, Delhi-NCR’s market has demonstrated a robust growth in the first half of this year, dominated by luxury units.

In the first six months, the region witnessed about 21,000 new launches, 35 per cent higher year-on-year, and equally healthy sales of over 21,000 units. High-end (31 per cent), premium (26 per cent), and luxury (18 per cent) segments together accounted for 75 per cent of total sales.

--IANS

aps/na