NEW DELHI: The grade-A office market in Delhi NCR is witnessing robust growth, with occupancy levels expected to reach 80.5-81.0% by March 2027, per ICRA, a rating agency.
Since March 2023, occupancy has surged significantly, climbing 600 basis points to 78.6% by September 2025. This increase is largely attributed to strong net absorption outpacing new supply over several years.
In FY2025, net absorption totaled 11.4 million sq ft, notably exceeding the 7.4 million sq ft of new supply. This trend has continued into the first half of FY2026, with net absorption reaching eight million sq ft compared to 7.3 million sq ft of new supply.
The demand for leasing in NCR has primarily been driven by the consulting and IT-BPM sectors, with strong activity noted in key business districts. Despite a substantial supply pipeline of around 14 million sq ft in FY2026 and 11 million sq ft in FY2027, ICRA anticipates further tightening of occupancy, noting that nearly 31% of the projected 17.5 million sq ft supply for the second half of FY2026 and FY2027 has already been pre-leased.
ICRA forecasts occupancy to rise to 78.5–79.0% by March 2026, with expectations of surpassing 80% in FY2027, reflecting ongoing demand strength.
Delhi NCR continues to be a central office market, accounting for almost 20% of India’s total Grade-A office stock across the six major cities, totaling around 204 million sq ft. Gurugram leads the NCR market with a 60% share, followed by Noida and Delhi. Key micro-markets, like Cyber City (Gurugram), Sector 62 (Noida), and Sector 48 (Gurugram), together make up 17% of the region’s total office supply.
Vacancy levels in Cyber City are expected to remain low due to the lack of new supply, while Sector 62 and Sector 48 are likely to see a further decline in vacancies, supported by steady demand and limited growth. Nevertheless, Delhi NCR still reports the highest vacancy rates among the top six cities, particularly due to lower occupancy rates of 50–55% in the peripheral business districts of Gurugram, where some older properties remain under-occupied.
From FY2018 to FY2025, the office stock in NCR grew at a CAGR of nearly 6%, slightly below the 7% CAGR seen across the top six cities.
Given the favorable demand-supply dynamics, ICRA anticipates a 3-4% increase in average office rentals in Delhi NCR by FY2026.
