A new report on the latest developments in Delhi’s property markets suggests that IT sector businesses are becoming increasingly active and seeking more office space in the National Capital Region (NCR).
The local office sector is characterised by “micro-markets”, Knight Frank has explained, because supply in the NCR became so constrained in the years prior to the global economic downturn. In recent years, the Indian economy saw notably slower growth, and Delhi’s office market struggled as a result.
However, there are now reasons for optimism regarding greater stability in the city’s commercial property industry, with companies from various IT-related sectors very much at the forefront of the recovery.
A statement on the subject from Knight Frank’s newest research read: “During 2010, leasing activity in the NCR was observed to have been rising, with the IT and BFSI (banking, financial services and insurance) sectors seeking out new office space to either initiate or expand their business operations here.
“A healthy absorption across micro-markets also led to a marginal improvement in the rentals.”
Elsewhere in India, office space in Mumbai’s central business district around Nariman Point was rated as being the sixth most expensive office market in the world, behind the likes of Hong Kong, central London and Tokyo.
Editor’s notes: In Q1 2023, there was 138.9 million square feet of office space stock within the whole Delhi-NCR market, and the vacancy rate was 22 per cent.
There were 12 established micro-markets across the region with rental rates ranging from 30 to 425 INR per square foot per month across them.
The micro-markets in the region were as follows:
Delhi-NCR Micro-Market
| Q1 2023 Office Rental Rate Range (INR/Psf/Per Month) |
Delhi CBD | 120-425 |
Delhi International Airport Limited | 225-250 |
South and South-East Delhi | 90-200 |
Delhi Others | 60-170 |
Gurugram CBD | 115-118 |
Gurugram-MG Road | 95-150 |
Gurugram-Golf Course Road | 95-200 |
Gurugram Other | 45-135 |
NOIDA Expressway | 50-75 |
NOIDA Sector 16, 16 A/B, 18 | 50-140 |
NOIDA Sector 62 | 50-65 |
NOIDA Others | 30-65 |
In Q1 2023, two of the largest office space deals in the NCR region were with serviced office space and coworking providers Incuspaze and Smartworks, which leased 345,000 square feet and 220,000 square feet of office space, respectively.
Research conducted in June 2026 found that, in the Delhi National Capital Region, gross office space absorption totalled 13.6 million square feet in 2025, a 33 per cent year-on-year increase.
In the first quarter of 2026, Delhi-NCR office rents ranged from 60 to 425 INR per square foot per month.
The vacancy rate declined to 12.9 per cent at the end of 2025, down from 17.4 per cent 12 months earlier.
In their 2025 year-end report, Savills observed that during 2020-2025 period, the technology sector
continued to retain its position as the largest contributor in the leasing activity, although its pace of growth had been relatively moderate.
In contrast, leasing by flex operators has shown a clear upward shift post-2022, overtaking BFSI by 2025.
Leasing by the Healthcare & Pharma sector had increased through 2024 before moderating in 2025.
It was expected that the Information Technology and Business Process Management (IT-BPM) sector was expected to retain the largest share of leasing activity in Delhi in 2026 and that the flexible workspace and BFSI sectors would compete closely.