After an extended phase of post-pandemic adjustment, Delhi-NCR’s office market is entering a more stable growth phase, marked by improving occupancy levels and sustained leasing activity across key micro-markets.
Short-term, cautious leasing seen in the immediate recovery period is gradually giving way to longer commitments, reflecting improving confidence among occupiers.
According to a report by ICRA, the Grade-A office market in Delhi-NCR continues to strengthen, with occupancy levels projected to cross 81 per cent by 2027. The improvement follows a sharp rise in occupancy since March 2023, driven by net absorption consistently exceeding fresh supply over multiple years. The recovery is increasingly being viewed as structural, supported by steady corporate expansion, higher utilisation of existing stock and a gradual tightening of quality Grade-A supply.
Industry data also points to a broader national recovery in office leasing. A recent report by Cushman & Wakefield showed that India’s office market recorded its strongest performance on record in 2025, with net absorption reaching 61.4 million sq ft, a 25 per cent year-on-year increase. Delhi-NCR posted the highest annual growth among major markets, with net absorption rising 82 per cent year-on-year. Global Capability Centres (GCCs) were a key demand driver nationally, accounting for 29.3 million sq ft of leasing, or 33 per cent of total gross absorption.
Within NCR, Gurugram continues to anchor office demand, supported by its established commercial districts and concentration of multinational occupiers. At the same time, Noida and Delhi are adding depth to the market, aided by infrastructure upgrades, emerging business corridors and a steady pipeline of institutional-grade developments. Peripheral corridors such as the Noida Expressway and parts of Faridabad are also seeing incremental interest as occupiers evaluate options that balance rentals, connectivity and future scalability.
Mohit Goel, Managing Director at Omaxe Group, said, “Delhi-NCR accounting 25% y-o-y increase in net office absorption among India’s leading markets underlines the region’s return to sustained commercial activity. With fresh Grade-A supply being added over the next two years, demand is clearly broadening beyond established hubs.” He added that improving connectivity and infrastructure are influencing occupier interest in newer locations.
Sandeep Chhillar, founder and chairman of Landmark Group, said demand patterns in Gurugram are also evolving. “What’s notable today is the nature of demand: occupiers are committing earlier and for longer durations, especially in Grade-A assets that meet global benchmarks,” he said, adding that measured new supply and steady absorption could support higher occupancy levels over the next two years.
Leasing momentum continues to be led by established micro-markets such as Cyber City and Sector 48 in Gurugram, along with Sector 62 in Noida, which benefit from mature infrastructure and strong occupier ecosystems. Demand is largely being driven by multinational companies, GCCs and technology-led firms, with a preference for longer lease tenures. At the same time, office design requirements are evolving, with greater emphasis on efficient layouts, collaborative spaces and flexible configurations.
Amish Bhutani, Managing Director of Group 108, said Noida and Greater Noida are increasingly being evaluated by occupiers due to infrastructure improvements and growing corporate presence. “Companies today are looking beyond traditional office hubs and prioritising integrated, future-ready developments that offer scale and efficiency,” he said.
Harinder Singh Hora, founder chairman of Reach Group, noted that occupiers are placing greater emphasis on connectivity, access to talent and proximity to residential catchments. “This has driven demand towards well-planned Grade-A developments that integrate design, sustainability, and employee experience,” he said, adding that mixed-use developments are also gaining relevance in leasing decisions.
Overall, the projected move towards 80 per cent-plus occupancy across NCR’s office market appears increasingly achievable, supported by limited near-term Grade-A supply, steady economic expansion and sustained interest from institutional occupiers. With diversified demand, controlled supply additions and evolving workplace preferences, Delhi-NCR continues to reinforce its position as one of India’s most mature and resilient office markets.
