Delhi NCR office market closes 2025 with 17.4m sq ft leasing

IT companies led the leasing demand.

Delhi NCR’s office market demonstrated resilience through 2025, closing the year with robust demand fundamentals and a positive forward outlook, according to a report by JLL. While gross leasing volumes remained largely stable, a sharp rise in net absorption and steady rental growth underscore occupier confidence across key micro-markets.

As per JLL, Delhi NCR recorded gross leasing of 17.4 million square feet in 2025, reflecting only a marginal 2 percent decline compared to 2024. More notably, net absorption surged 30 percent year-on-year to reach 12.3 million square feet, indicating stronger conversion of leased space into occupied stock.

JLL attributes this growth to sustained occupier expansion, particularly in Gurgaon and Noida. Gurgaon accounted for 63.1 percent of the total net absorption during the year, followed by Noida at 26.9 percent. Within Gurgaon, the NH-8 corridor remained a focal point for leasing and completions, reinforcing its position as one of the region’s most established office clusters.

Sectorally, IT and ITeS companies led office space uptake in 2025 with a 24.7 percent share of gross leasing, JLL reported. Co-working operators followed closely with a 21.2 percent share, highlighting continued demand for flexible workspace solutions. Consultancy firms contributed 14.8 percent of total leasing activity, reflecting diversified occupier interest across industries.

Supply additions remained measured yet significant. JLL noted that 9.4 million square feet of new Grade A office space was delivered across Delhi NCR during 2025. Gurgaon led new completions with a 55 percent share, followed by SBD Delhi at 28 percent. Key projects were completed along NH-8 and in Aerocity, strengthening the institutional-grade office inventory in these submarkets.

In the final quarter of the year, 1.95 million square feet of new office supply became operational, largely concentrated in SBD Delhi and Noida. With these additions, the region’s total Grade A office stock reached nearly 164.4 million square feet, as per JLL data.

Rental values also moved upward during the year. According to JLL, Grade A office rents across Delhi NCR increased by 8.7 percent year-on-year, with Q4 witnessing broad-based appreciation. The consultancy noted that strong pre-commitments throughout the year encouraged major developers to recalibrate pricing upward for upcoming project phases, signaling confidence in sustained demand.

JLL emphasized that the recent leasing momentum — driven by a diverse occupier base including technology companies, financial institutions and flexible workspace providers — is likely to support further rental growth in the near term.

Looking ahead, JLL projects leasing activity to remain stable, with net absorption expected to reach 7.0–7.5 million square feet by the end of 2026. The firm highlighted that premium office developments by leading developers and institutional owners are poised to anchor leasing momentum and rent appreciation across key micro-markets.

With quality completions in the pipeline, enhanced connectivity infrastructure, and sustained demand for Grade A assets, JLL maintains that Delhi NCR will continue to be an attractive office destination for both occupiers and investors over the long term.