Delhi office market set to grow with 5 million sq ft after nearly decade of sluggish additions: CBRE

New Delhi [India] September 16 (ANI): After nearly a decade of limited supply, Delhi's office market is poised for significant growth, with around 5 million square feet of new office space projected to be added between 2025 and 2027, according to the real estate consulting firm CBRE.

The office supply in the capital has been limited since 2016, largely due to a scarcity of developable land.

According to Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, Delhi's strong economic potential has helped its property market not just to bounce back, but also start on a path of steady, high-quality growth.

"New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability and design. This change shows that the city is becoming more affluent and that people want a better quality of life. The market is also becoming more mature, thanks to strong and clear regulations. This has given people a lot of confidence and attracted significant investment. With the Delhi Master Plan 2041 guiding future growth, the city is ready to play a pivotal role in India's real estate story," he said.

The report highlighted that Delhi's real estate sector is on a trajectory of sustained growth, driven by a combination of progressive policies, visionary urban planning, and cutting-edge technology.

Government initiatives and regulatory oversight from bodies such as Delhi RERA (DLRERA) are fostering a new era of transparency, enhancing the city's attractiveness to investors. This momentum is further bolstered by the Delhi Master Plan 2041, the government's comprehensive blueprint for urban expansion, which integrates rural areas and prioritises affordable housing.

During January to June (H1 2025), Delhi recorded an office space absorption of approximately 400,000 sq. ft., driven by strong business confidence in core business districts. The leading sectors driving this demand were research, consulting, and analytics (39 per cent share), followed by flexible space operators (23 per cent) and BFSI (18 per cent), collectively contributing to around 80 per cent of total leasing activity in the six months.

In the first half of the calendar year, Delhi also recorded a healthy retail space absorption of about 230,000 sq. ft., with high streets accounting for 72 per cent of the total leasing.

Fashion and apparel retailers demonstrated the highest demand with a 35% share, followed by homeware and department stores (20 per cent) and food and beverage operators (17 per cent), underscoring the growing popularity of lifestyle-driven and experiential retail formats across key locations.

These trends have been further strengthened by rising disposable incomes and the entry of global luxury brands. With the growing availability of premium spaces and more brands looking to enter the capital city, the momentum of retail leasing is expected to remain strong in the coming quarters.

On the residential front, Delhi-NCR's market has demonstrated a robust growth in H1 2025, dominated by luxury units. In the first six months, the region witnessed about 21,000 new launches, 35 per cent higher year-on-year, and an equally healthy sales of over 21,000 units. High-end (31 per cent), premium (26 per cent), and luxury (18 per cent) segments together accounted for 75 per cent of total sales.

Led by strong demand and restricted supply, capital values, particularly in South-East and South-West Delhi, have also witnessed significant appreciation. Major infrastructure projects, including metro network expansions and new expressways, are poised to make peripheral areas more attractive for development and investment. (ANI)

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