Mumbai, a bustling metropolis, has long been considered the financial epicenter of India, but attention is now shifting towards the Delhi-NCR region as it showcases promising trends in the commercial real estate sector. After weathering the challenges posed by the pandemic, Delhi-NCR's office market is steadily progressing towards a robust recovery, characterized by increasing occupancy rates and sustained leasing activities across vital micro-markets. This recovery is not just a momentary bounce-back; it reflects a growing confidence among occupiers who are now looking for longer lease commitments.
According to a recent report by ICRA, the Grade-A office market in Delhi-NCR is on an upward trajectory, with occupancy levels anticipated to surpass 81% by 2027. This optimistic forecast follows a significant increase in occupancy rates since March 2023, bolstered by net absorption consistently outpacing new supply over the years. The ongoing recovery is being recognized as a structural improvement, driven by steady corporate expansions, enhanced utilization of existing office spaces, and a gradual tightening of quality Grade-A supply.
Nationally, the office leasing landscape is witnessing a broader recovery. A report from Cushman & Wakefield highlighted that India's office market achieved its strongest performance in 2025, with net absorption reaching 61.4 million sq ft, marking a 25% year-on-year increase. Notably, Delhi-NCR demonstrated the highest annual growth among major markets, with net absorption soaring 82% year-on-year. The surge in demand is largely fueled by Global Capability Centres (GCCs), which accounted for 29.3 million sq ft of leasing activity, representing 33% of the total gross absorption across the country.
Within the NCR, Gurugram remains at the forefront of office demand, bolstered by its established commercial hubs and a concentration of multinational companies. Concurrently, Noida and Delhi are expanding their market presence, supported by significant infrastructure enhancements and the emergence of new business corridors. Furthermore, peripheral regions like the Noida Expressway and parts of Faridabad are garnering attention from occupiers who are exploring options that strike a balance between rental costs, connectivity, and future scalability.
In conclusion, as the Delhi-NCR office market continues to evolve, it is set to become a thriving landscape for businesses seeking quality workspaces. With projected occupancy rates on the rise and a diverse array of developments in the pipeline, the region is poised for a successful and sustainable future in commercial real estate. This momentum not only reflects the resilience of the market but also the optimistic outlook for businesses operating in this dynamic environment.
