Delhi’s office market set for major supply push after nearly decade of sluggish additions: Report

The report underlined that Delhi’s real estate expansion is being powered by progressive policies, forward-looking planning, and the integration of technology.

After nearly a decade of sluggish additions, Delhi’s office real estate market is finally gearing up for a major supply push according to a report by CBRE South Asia Pvt. Ltd. and the Confederation of Indian Industry (CII) projects that the city will see close to 5 million sq. ft. of fresh office space coming up between 2025 and 2027.

The study, titled “Delhi 2041: Shaping the Future of Real Estate,” was unveiled on Monday at the 2nd CII Delhi Real Estate Summit 2025 in the capital. It notes that new office supply has remained patchy since 2016, mainly due to a shortage of developable land. The expected pipeline, therefore, marks a significant reversal of the trend and signals renewed momentum for the commercial property market in the city.

According to Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, Delhi’s strong fundamentals have placed it on a path of sustained, high-quality growth. “New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability and design. This change shows that the city is becoming more affluent and that people want a better quality of life. The market is also becoming more mature, thanks to strong and clear regulations. This has given people a lot of confidence and attracted significant investment. With the Delhi Master Plan 2041 guiding future growth, the city is ready to play a pivotal role in India’s real estate story,” he said.

Key Market Trends

Office Absorption: Between January and June 2025, Delhi saw office space absorption of about 400,000 sq. ft., led by research, consulting and analytics firms (39%), flexible space operators (23%) and BFSI (18%), which together accounted for nearly 80% of leasing activity.

Retail Leasing: The city also recorded retail absorption of around 230,000 sq. ft. in H1 2025, with high streets taking 72% of the share. Fashion and apparel retailers dominated demand with 35%, followed by homeware and department stores (20%) and food and beverage operators (17%).

Residential Segment: Delhi-NCR launched about 21,000 new housing units in H1 2025 — a 35% year-on-year rise — and also sold over 21,000 units. High-end (31%), premium (26%) and luxury (18%) segments accounted for three-fourths of total sales. Rising demand, coupled with limited supply, has driven capital appreciation in South-East and South-West Delhi.

The report underlined that Delhi’s real estate expansion is being powered by progressive policies, forward-looking planning, and the integration of technology. Oversight from regulatory bodies such as Delhi RERA (DLRERA) has improved transparency, making the market more attractive to investors. The Delhi Master Plan 2041, which emphasises affordable housing and urban expansion into rural areas, is expected to further drive growth.