NEW DELHI: The National Capital Region (NCR) has outshined other Indian cities in both commercial and residential real estate during the first half of 2025, achieving a record 7.2 million sq ft of office space leased and a significant increase in ultra-luxury home sales, as reported by Knight Frank India.
Office Market: Record Leasing Momentum in NCR
NCR’s office leasing rose by 27% year-on-year, reaching an unprecedented high and signaling the region’s growing status as a commercial hub. Gurugram, recognized as NCR’s corporate focal point, represented a remarkable 65% of total office leasing, a notable increase of 900 basis points from the previous year. The demand stemmed not only from domestic companies but also from Global Capability Centres (GCCs), which elevated their leasing share to 31% in H1 2025, matching that of domestic firms. This trend indicates a growing trust by global firms in NCR’s talent and infrastructure.
The average rental value for office space surged 8% year-on-year, now standing at ₹93.5 per sq ft per month. The Central Business District in Delhi remains the priciest area, with rents ranging from ₹220 to ₹390 per sq ft monthly. In Gurugram, Golf Course Road and Cyber City sustained high demand and pricing. Approximately 4.1 million sq ft of new supply debuted across NCR in this timeframe, yet the demand for quality Grade A offices continues to outstrip supply, putting upward pressure on rents.
Residential Market: Luxury Sector Thrives Despite Overall Decline
While total sales and launches in the residential sector saw a modest dip, the story was heavily influenced by increasing aspirations for premium living. Housing sales in NCR reached 26,795 units in H1 2025, reflecting an 8% year-on-year decrease, while new launches fell 17% to 25,233 units. Despite this downturn, the luxury housing segment experienced remarkable growth.
Sales of homes priced over ₹2 crore skyrocketed, making up 57% of total sales, a rise from 43% in H1 2024. Even more remarkable were the ultra-luxury homes priced above ₹50 crore, which saw a staggering year-on-year growth of 2,550%. These high-profile sales were primarily concentrated in Gurugram, reinforcing its status as NCR’s luxury residential hub. Gurugram alone accounted for 51% of all housing sales and 55% of new supply, particularly in areas along Golf Course Extension Road, Southern Peripheral Road, and Dwarka Expressway.
Noida and Greater Noida combined made up 30% of NCR’s home sales, supported by infrastructure enhancements like the ongoing development of Noida International Airport in Jewar and metro expansions. Demand in these regions predominantly came from the mid to upper-mid segments.
Residential prices in NCR averaged ₹5,535 per sq ft in H1 2025, showing a healthy year-on-year increase of 14%. While premium and luxury segments thrived, the affordable housing segment (₹25–50 lakh) suffered a 37% sales decline, attributed to rising prices, land cost pressures, and stricter lending conditions.
Shifts in Buyer Preferences and Developer Strategies
Notable trends indicate a shift towards larger homes with enhanced amenities, particularly post-pandemic. In response, developers are increasingly introducing high-value projects tailored for aspirational urban families and NRIs.
Knight Frank’s research suggests a maturing market, wherein both end-users and investors are more focused on long-term value. The growing demand for studio apartments, branded residences, and gated communities equipped with health and wellness amenities indicates changing buyer preferences.
