Delhi’s office real estate market is set for a significant turnaround after nearly a decade of limited new supply, with about 5 million sq ft of fresh office stock expected between 2025 and 2027. According to a CBRE report released at the 2nd CII Delhi Real Estate Summit 2025, the upcoming developments will reshape the capital’s business landscape and strengthen its role as a regional hub for research, consulting, financial services, and flexible workspace operators.
The report, titled Delhi 2041: Shaping the Future of Real Estate, highlighted that the new supply will be concentrated in four major districts—Netaji Subhash Place, Rohini, Gateway District, and Aerocity. These locations are positioned as the next growth corridors for corporate leasing, supported by connectivity, large-format developments, and increasing demand for high-quality office spaces.
During January–June 2025, Delhi recorded about 400,000 sq ft of office space absorption, a figure that underscores business confidence despite a historically constrained supply pipeline. Research, consulting, and analytics firms accounted for 39% of the leasing activity, while flexible space operators took 23% and banking, financial services, and insurance (BFSI) contributed 18%. Together, these sectors represented nearly 80% of the total demand.
CBRE noted that the preference of occupiers for central and semi-central locations continues to be strong, with premium rentals in the Central Business District (CBD) and Sub-Central Business Districts (SBD 2 and 3). Projects such as Worldmark 4, 5, and 6 and the Prestige Trade Centre are expected to anchor the next phase of office growth in these micro-markets.
Retail demand complements office expansion
Alongside the office market, Delhi’s retail real estate has also witnessed steady momentum in the first half of 2025. About 230,000 sq ft of retail space was absorbed, with high streets contributing 72% of the leasing. Fashion and apparel brands accounted for the highest share at 35%, followed by homeware and department stores at 20% and food and beverage operators at 17%.
The report noted that rising disposable incomes and the entry of global luxury brands have made Delhi a focal point for experiential and lifestyle-led retail formats. The availability of premium retail spaces in areas aligned with office hubs is expected to maintain momentum in the coming quarters.
Economic underpinnings
The backbone of Delhi’s economy remains its services sector, which includes information technology, telecommunications, BFSI, real estate, education, and tourism. The capital’s role as the administrative centre of India also creates a steady base of public sector employment. According to CBRE, Delhi’s strategic location, well-developed transport network, and skilled workforce provide long-term resilience to its real estate market.
CBRE’s Chairman and CEO for India, South-East Asia, Middle East & Africa, Anshuman Magazine, noted that Delhi’s strong economic fundamentals have enabled its property market to recover and transition into a phase of steady growth. He said the Delhi Master Plan 2041 is expected to provide further direction, positioning the city as a pivotal player in India’s real estate expansion.
On the residential side, Delhi-NCR recorded about 21,000 new launches in the first half of 2025, marking a 35% year-on-year increase. The market also saw healthy sales, matching the launch volumes at over 21,000 units. Demand was strongest in the high-end (31%), premium (26%), and luxury (18%) categories, which together represented 75% of sales.
Capital values in South-East and South-West Delhi have shown notable appreciation, aided by limited supply and sustained demand for larger units. Ongoing metro expansions and expressway projects are expected to extend this trend to peripheral markets by improving accessibility and reducing travel times.
The CBRE report emphasized that the alignment of upcoming supply with demand from key sectors will be crucial to sustaining Delhi’s office market recovery. The focus of occupiers on sustainability, design, and modern amenities indicates a maturing market, where location remains important but is no longer the sole driver of leasing decisions.
With 5 million sq ft of new office supply in the pipeline and strong residential and retail demand, Delhi’s real estate market is preparing for a period of balanced growth. While premium locations will continue to command higher rentals, the development of secondary hubs such as Netaji Subhash Place and Rohini is expected to spread the momentum more evenly across the city.
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