Delhi office absorption set to reach up to 9.5m sq ft by end-2025

Absorption hit 3.7m sq ft in Q1 alone.

Quality office projects in key areas in Delhi, developed by leading developers and institutional owners, are set to drive leasing momentum and rent appreciation, according to a recent JLL report. Net absorption is projected to reach 9.0-9.5 million sq ft by year-end 2025.

“Delhi NCR’s office sector thrives with positive trends, premium developments and strong demand. Improved inter-submarket connectivity is likely to boost investment in the region’s commercial real estate,” the report said.

Here’s more from JLL:

In Q1 2025, gross leasing totalled 4.2 million sq ft. The IT/ITeS sector accounted for 34% of leasing activity, followed by Telecom, Healthcare-Biotech and Real Estate & Construction collectively at 20%. Flexible space operators contributed 18.5% of the total volume.

In Q1, net absorption reached 3.7 million sq ft, up 62% y-o-y and 29% q-o-q. Gurgaon (69%) and Noida (27%) held the largest share across submarkets. The NH-8 submarket recorded the highest net absorption at 31%, followed by the Noida-Greater Noida Expressway at 18%.

Delhi NCR office market adds 2.8 million sq ft of supply

In Q1 2025, a total of 2.8 million sq ft of new office space entered the market, pushing Grade A stock to nearly 157.8 million sq ft. Gurgaon contributed a dominant 72% share, while Noida accounted for the remaining 28%.

Q1 2025 saw two key additions to Delhi NCR’s office market: DLF Downtown Block 4 with nearly 2 million sq ft in Gurgaon and Bhutani Alphathum Tower A with 0.7 million sq ft in Noida. By end-2025, total supply of 8.8 million sq ft is expected to come onstream.

Delhi NCR records a 2% q-o-q increase

Delhi-NCR saw Grade A office rent hikes in Q1 2025. Strong net absorption and pre-commitments drove developers to raise future phase prices, signalling a positive market outlook.

Recent strong leasing activity signalled potential near-term rent hikes. Demand was predominantly driven by a mix of tenants: the flexible workspace sector, technology companies and financial institutions.