India’s commercial office market is demonstrating sustained momentum, consolidating its position as a leading destination in the Asia-Pacific region, with Delhi National Capital Region playing a significant role in the broader expansion story.
Despite global economic uncertainty, demand for quality workspace remains robust, driven by multinational firms, technology companies and Global Capability Centres (GCCs) that continue to expand their footprints in key Indian hubs. Market data compiled for 2025 shows that India’s three largest office markets — Bengaluru, Mumbai and Delhi-NCR — collectively absorbed approximately 50 million sq ft of space, marking a year-on-year increase of around 21 per cent and the highest annual absorption on record to date. Within this mix, Delhi-NCR distinguished itself with strong leasing activity, reporting significant uptake and rental growth across key sub-markets as occupiers sought long-term, high-quality offices. Industry observers explain that the demand trajectory reflects structurally driven expansion rather than short-term cyclical swings. Corporate occupiers are increasingly evaluating workspace decisions against long-term operational models, prioritising mobility, employee convenience and the depth of local commercial ecosystems.
This is particularly evident in Delhi-NCR, where both demand and rents have shown steady upward trends. Rental growth in the region ranged between 6-8 per cent year-on-year recently, with select micro-markets like Gurugram’s central business districts outperforming that average. The composition of office demand is also diversifying. While technology and IT-BPM firms continue to be major occupiers, other sectors such as professional services and engineering are contributing significantly to leasing volumes. GCCs — multi-functional hubs for global enterprise operations — have been especially prominent, signalling confidence in India’s talent pool and long-term growth prospects. For Delhi-NCR, the commercial real estate boom is tied to ongoing infrastructure improvements and the anticipated operationalisation of the Noida international airport, which market participants believe could enhance the region’s accessibility and attractiveness for multinational tenants.
The expanding airport connection, coupled with strong occupier interest, has helped catalyse activity in both Grade A and flex space segments. Urban real estate analysts note that while demand fundamentals remain strong, the market’s ability to sustain momentum will depend on the delivery of quality office stock alongside supportive infrastructure, such as transport connectivity and last-mile access. Vacancy rates in key nodes remain competitive, and with leasing activity well above historical averages, the pressure on rents and demand for future-ready workspaces continues to shape investment strategies. Beyond central hubs, the broader Indian office market has shown record net absorption, with data from recent reports indicating annual growth upwards of 25 per cent across the top eight cities, led by Bengaluru and Delhi-NCR among others. This reinforces India’s competitive edge within the Asia-Pacific office landscape, where structural demand, diverse occupier bases and rising institutional interest are transforming the commercial real estate narrative.
As corporate strategy increasingly favours long-term footprint expansion over short-term leasing, Delhi-NCR’s rise underscores the city-region’s pivotal role in India’s commercial ecosystem. Its success also highlights how office markets that combine physical infrastructure, talent depth and strategic connectivity can anchor national real estate growth in an era of evolving work patterns and global investment flows.
