NEW DELHI: In the first half of 2026, the National Capital Region (NCR) saw gross office leasing reach 7.2 million sq ft, reflecting a slight one percent decrease compared to the previous year, as detailed in a report by Knight Frank India.
Office completions amounted to four million sq ft during this timeframe, marking a two percent decline year-on-year. Overall, the total office stock in NCR has risen to 208.1 million sq ft, registering a five percent annual increase.
Average transaction rents saw a significant rise of 13 percent year-on-year, reaching ₹106 per sq ft per month in H1 2026. According to Knight Frank, NCR is now the second-most expensive office market in India, following Mumbai.
Vacancy rates climbed by 240 basis points year-on-year to 14.4 percent at the end of H1 2026, largely due to new supply entering the market.
India-facing occupiers contributed to 34 percent of NCR’s total office leasing in H1 2026, while flexible workspace providers made up 30 percent of the overall leasing activity.
Global capability centers accounted for 21 percent of leasing volumes during the same period, and third-party IT services represented 15 percent of leasing activity in H1 2026.
Gurugram retained its position as the largest office micro-market in NCR, comprising 45 percent of total gross leasing. However, its market share declined from 65 percent in H1 2025 as demand spread across the region.
Noida’s share of office leasing climbed to 39 percent, up from 24 percent the previous year, while SBD Delhi accounted for 15 percent of total leasing, increasing from eight percent in H1 2025.
Knight Frank attributed Noida’s growth to new office space deliveries and infrastructure developments associated with the Noida International Airport.
The average transaction size in NCR surged by 30 percent year-on-year to approximately 70,912 sq ft in H1 2026, underscoring a preference for larger, institutional-grade office spaces.
Pre-leased transactions constituted about 35 percent of gross absorption during the period. Prime assets located in Central Delhi, Aerocity, Cyber City, and Golf Course Road continued to experience vacancy rates below 10 percent, according to the report.
Among various business districts, SBD Delhi showcased the highest annual rental growth at 70 percent, followed by Noida at 36 percent, Faridabad at 18 percent, CBD Delhi at 15 percent, and Gurugram Zone A at 12 percent.
