India’s office real estate market reached new heights in 2024, with Delhi-NCR emerging as a significant driver of growth. The region recorded a 30% year-on-year (YoY) increase in net absorption, achieving 9.4 million square feet for the year, according to a report by JLL. In the fourth quarter alone, Delhi-NCR posted its best-ever performance with 2.9 million square feet of net absorption.

Gross leasing activity in Delhi-NCR hit an all-time high of 17.7 million square feet in 2024, reflecting a robust 27.2% YoY growth. This performance positioned the region as a key market for occupiers, driven by the expansion of Global Capability Centres (GCCs) and flexible workspaces, which together accounted for 56% of the gross leasing activity nationwide. “Delhi-NCR’s strategic importance and appeal to diverse occupiers, particularly in technology and BFSI (banking, financial services, and insurance), have been crucial to this growth,” said JLL Chief Economist Dr. Samantak Das.

Flexible Workspaces and Technology Lead the Way

The technology sector played a pivotal role in this surge, contributing 30.6% to Delhi-NCR’s Q4 leasing activity. Meanwhile, financial services and manufacturing sectors also witnessed robust growth. Flexible workspaces continued their ascent, with companies like Smartworks leasing large campuses, including a recent lease of 0.47 million square feet in Gurgaon. This brings Smartworks’ total portfolio in Delhi-NCR to over 1 million square feet, underscoring the region’s appeal to hybrid work models.

India’s Office Market Breaks Records

On a national scale, India’s office real estate market achieved unprecedented success in 2024, with net absorption reaching a historic 49.56 million square feet. Delhi-NCR accounted for 15.4% of Q4’s record-breaking 18.53 million square feet, while Bengaluru maintained its lead with 21.99 million square feet of gross leasing for the year. Across the top seven cities, vacancy rates dropped to a three-year low of 16.3%, highlighting the strong demand for office spaces.

Strategic Advantages Propel Growth

Delhi-NCR’s skilled workforce, advanced infrastructure, and strategic location played a vital role in attracting global and domestic occupiers. Sudhanshu Rai, Director at Ashrai Infra, highlighted the region’s success, citing the uptake of spaces in projects like Golden 1 by major clients such as TVS Motorcycle, Tata Capital, and Aditya Birla Capital. He credited government initiatives and connectivity enhancements as key factors driving this progress.

Looking Ahead

As Global Capability Centres and flexible workspaces continue to expand, Delhi-NCR is expected to maintain its upward trajectory. The region’s strategic importance and appeal to occupiers across industries solidify its position as a key player in India’s thriving office real estate market.