The latest report by Knight Frank India states that the real estate market of Delhi-NCR continued to show strength and resilience in the second half of 2025. Even though office leasing remained somewhat steady from last year’s record levels, Delhi-NCR remained India’s second-largest market in terms of total office stock, while Bengaluru remained at the first position. According to the report, the residential segment has now entered a phase of controlled and balanced normalization after three years of brisk activity. During this period, end-user demand, increasing share of premium housing and strong prices provided stability to the market.
Office leasing above long-term average in 2025
Delhi-NCR recorded office leasing of 1.13 crore (11.3 million) sq ft during full year 2025, the second highest annual level ever. Although this figure was 11% lower than the previous year, it still remained well above the long-term average. Additionally, Delhi-NCR is expected to account for 13% of the country’s total office leasing in 2025, making it one of the most active and liquid office markets in India.
Leasing slows down in second half, supply picks up
There was 4.1 million sq ft of office leasing in Delhi-NCR in the second half of 2025, marking a decline of 42% on a year-on-year basis. This was mainly due to last year’s high base and limited availability of ready-to-move-in Grade-A space for some time. However, the situation on the office supplies front remained strong. NCR is projected to record office completions of 9.6 million sq ft in 2025, an annual growth of 71% and the highest level since 2019. Office completions in H2 2025 alone grew 108% year-on-year to reach 5.5 million square feet. The bulk of this new supply came from projects by leading developers in Gurugram and Noida.
Largest office market in Gurugram NCR
Gurugram remained the largest office market in NCR, accounting for 61% of annual transactions, led by key micro-markets such as NH-48, Golf Course Road, Golf Course Extension Road and Udyog Vihar, the report said. Noida accounted for 27% of annual leasing, supported by better infrastructure and the soon-to-commence operations at Noida International Airport at Jewar.
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