According to real estate consultancy firm Knight Frank India, India’s National Capital Region (NCR) saw its highest-ever office leasing activity in 2024, recording 12.7 million square feet of transactions. This surge reflects the region’s growing appeal to businesses, with an average deal size increasing by 29% year-over-year (YoY) to 40,025 sq. ft. in 2024, compared to 30,955 sq. ft. in 2023.

Across India’s top eight commercial markets, the average deal size rose by 14%, reaching 43,387 sq. ft. in 2024 from 37,976 sq. ft. the previous year. In NCR, rental rates also saw a steady rise, with an average increase of 3%, bringing transacted rents to ₹88 per sq. ft. per month. Among the sub-markets, Gurugram Zone A recorded the highest rental growth of 9%, with rates ranging between ₹115-185 per sq. ft. per month, while CBD Delhi remained the most expensive, with rentals between ₹218-360 per sq. ft. per month.

Gurugram remained NCR’s top choice for office occupiers, with micro-markets like DLF Cyber City, Golf Course Extension Road, and Udyog Vihar seeing continued demand. Meanwhile, Noida emerged as a strong competitor, particularly in Sector 62 and Greater Noida Expressway, where businesses prioritise well-connected office locations.

Noida’s Office Leasing Jumps 48% YoY

Noida’s office market witnessed a remarkable 48% increase in leasing volume, totalling 3.92 million sq. ft. in 2024. While Gurugram remained the dominant market, with 7.65 million sq. ft. of office space leased, it still saw a healthy 24% growth over the previous year. SBD-Delhi, however, experienced a 2% decline, but leasing activity in Aerocity remained strong, further solidifying its position as a key commercial destination.

“Occupiers are increasingly valuing accessibility and infrastructure in this business district, which has encouraged a rise in demand for traditional office spaces,” stated Knight Frank’s report.

Flexible Workspaces in High Demand

The demand for flexible office space formats grew 2.4 times YoY, indicating a major shift in workplace preferences. The resurgence of this segment is driven by businesses adjusting to hybrid work models, which blend remote and in-office operations. This shift has increased demand for high-quality, flexible spaces as companies seek agility in their real estate strategies.

With NCR’s record-breaking leasing activity, rising rentals, and increasing preference for flexible office models, the region continues strengthening its position as one of India’s most sought-after commercial real estate markets.NCR’s