Delhi net office absorption to reach up to 3.1m sq ft by year-end

Analysts expect a sustained momentum in leasing activity for the rest of 2025.

In a report, JLL said Delhi’s institutional-grade office assets in prime corridors will capture higher occupancy rates and command premium rents. Strong leasing momentum is expected to continue into Q4 2025, with net absorption projected at 2.6 to 3.1 million sq ft.

“Delhi NCR’s office market to maintain strong momentum, driven by high-quality deliveries and robust tenant demand. Improving transportation links between key submarkets is expected to enhance the region’s commercial real estate investment appeal,” the report added.

Here’s more from JLL:

Delhi NCR office take-up reached 4.6 million sq ft in Q3. Consultancy businesses led the activity with 28% of the total leasing, followed by IT/ITeS (20%), flexible workspaces (15%) and manufacturing companies (13%), demonstrating broad-based market interest.

Net absorption in Delhi NCR surged to 3.9 million sq ft in Q3, up by 65% q-o-q and 103% y-o-y. Gurgaon captured 70%, while Noida accounted for 23% of the total activity. NH8 and Noida-Greater Noida Expressway contributed two-thirds of regional absorption.

New office developments contributed 3.03 million sq ft to Delhi NCR supply

New office completions, totalling 3.03 million sq ft, drove Delhi NCR’s Grade A stock to 162.5 million sq ft in Q3. Gurgaon emerged as the primary supply driver with 62% of new office space additions, while SBD Delhi and Noida contributed 35% and 3%, respectively.

Prominent office completions in Delhi NCR included The Atrium Place Phase 1 (1.9 million sq ft) in Gurgaon and Worldmark Tower 4 (1.05 million sq ft) in SBD Delhi. A robust development pipeline promises approximately 2.2 million sq ft in Q4 2025.

Office rents in Delhi NCR appreciated 3% q-o-q

Delhi NCR Grade A office rents increased by 3% q-o-q and 8% y-o-y. Healthy absorption rates and pre-commitments have strengthened developer sentiment, driving rents for upcoming supply phases.

Diversified occupier demand from IT/ITeS, consultancy businesses, flex space operators, BFSI and manufacturing firms is expected to drive absorption rates and increase rents in the coming quarters.