The Delhi-NCR office space market has witnessed a remarkable surge in demand, recording a 61% year-on-year increase in net absorption, reaching 9.5 million square feet in 2024. According to a report by Anarock Group, Delhi-NCR is the fastest-growing office market among India’s top seven cities. Nationwide, net office absorption in these cities hit nearly 50 million sq ft, a 29% rise from the 38.64 million sq ft recorded in 2023.

The increasing demand from Global Capability Centres (GCCs) and the technology sector is driving this growth. The co-working segment also showed strong momentum, accounting for 34% of total office transactions—up 6% from the previous year. Meanwhile, the share of the IT-ITeS sector declined by 3% to 29%, while consulting firms contributed 12% to the total leasing activity.

“The year 2024 emerged as a transformative year for the office real estate market, characterized by robust absorption, strategic expansion by diverse sectors, and strong rental growth across major markets,” said Peush Jain, MD-Commercial Leasing and Advisory, Anarock Group.

Despite the surge in demand, new office completions in the NCR market declined by 22%, dropping from 7.6 million sq ft in 2023 to 5.9 million sq ft in 2024. This controlled supply and intense leasing activity led to a 2.6% drop in vacancy rates, bringing them down to 22.6%. However, NCR still maintains relatively higher vacancy levels than other major office markets in India.

Office rental rates in the region also saw an upward trend, rising by 5% year-on-year to Rs 86 per sq ft per month. Since 2019, rental prices have recorded a steady 10% growth. Among NCR’s micro-markets, Noida stood out as the most dynamic, registering a 6% annual rental increase. Despite this, it remains the most affordable market, with rental prices ranging between Rs 60-130 per sq ft per month.

With strong demand from global enterprises, evolving workplace trends, and limited new supply, Delhi-NCR’s office market appears poised for continued growth in the coming years.