Delhi office absorption to hit up to 8.4m sq ft by year-end

Gross leasing volume reached an all-time high in 2024.

Quality office projects in key areas, developed by leading developers and institutional owners, are set to drive leasing momentum and rent appreciation in Delhi, according to a JLL report. Net absorption is projected to reach 8.3-8.4 million sq ft by year-end 2025.

“Positive market trends, high-quality upcoming inventory, solid tenant uptake and improving connectivity are enhancing the attractiveness of various submarkets. This is expected to attract investors to Delhi NCR’s office sector,” the report added.

Here’s more from JLL:

In 2024, gross office leasing totalled 17.7 million sq ft flexible spaces operators comprised 35.9% of the total, followed by IT/ITeS (19.6%), Manufacturing (12.7%) and BFSI (11.5%). Compared to 2023, this indicates an annual uptrend of 27.2%.

In 2024, net absorption reached 9.4 million sq ft, up 30% y-o-y. Gurgaon (63%) & Noida (33%) had the highest share across submarkets. The GCR Extension & Noida-Greater Noida Expressway saw significant occupier interest in 2024. Q4 net absorption was 2.84 million sq ft.

Delhi NCR office market supply stands at 5.6 million sq ft

In Q4 2024, new supply of 1.9 million sq ft was added, pushing Grade A stock to nearly 155 million sq ft Gurgaon, Noida and SBD Delhi saw an infusion of new supply.

Annual completions totalled 5.6 million sq ft, with Gurgaon dominating at 74%, followed by Noida (21%) and SBD Delhi (5%). Quality projects from major developers and institutional owners are slated for the next five years.

Annual rental increase of 5% recorded in Delhi NCR

Q4 2024 saw Grade A office rents increase across Delhi NCR. Encouraged by solid pre-commitments throughout the year, major developers raised pricing for future phases, indicating a positive market trajectory.

The robust leasing activity in recent months serves as a strong indicator of potential rent increases in the near term. Demand is primarily driven by a diverse mix of tenants, including flexible workspace operators, technology companies and financial institutions.

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