Delhi office market revival: Key areas where 5 million sq ft of new office supply is expected

Delhi’s office real estate market is on the cusp of a significant revival, set to add around 5 million sq. ft. of new office space between 2025 and 2027 after a decade-long lull caused mainly by limited developable land. This fresh supply marks a vital turning point for the capital’s commercial real estate landscape, according to a CBRE and CII joint report titled “Delhi 2041: Shaping the Future of Real Estate,” unveiled at the 2nd CII Delhi Real Estate Summit 2025.

The new office supply will be concentrated in key business hubs: Netaji Subhash Place, Rohini, Gateway District, and Aerocity. These areas are experiencing strong demand fueled by sectors such as research, consulting, and analytics, which account for 39% of leasing activity, along with flexible workspace operators (23%) and the banking, financial services, and insurance (BFSI) sector (18%), collectively driving nearly 80% of office space absorption in the first half of 2025.

This momentum reflects a mature office market responding to evolving corporate needs for modern, amenity-rich, and sustainable workspaces that support hybrid working models and technological transformation. Delhi’s office absorption reached about 400,000 sq. ft. during January-June 2025, demonstrating growing business confidence in core commercial districts.

This revival is closely tied to Delhi’s broader urban growth plans under the Delhi Master Plan 2041, which promotes sustainable development, improved infrastructure, and regulatory transparency through bodies like Delhi RERA. These factors have attracted substantial investment and renewed developer interest in office projects.

Meanwhile, Delhi’s retail sector is also thriving, with 230,000 sq. ft. of retail space absorbed during the first half of 2025, driven largely by fashion and apparel, homeware, department stores, and food and beverage brands. High street retail leasing comprises 72% of this activity, highlighting the city’s growing preference for lifestyle-oriented consumer experiences.

In summary, the upcoming 5 million sq. ft. of new office space in strategic locations promises to enhance Delhi’s position as a commercial real estate hub, offering modern, flexible, and sustainable work environments while driving economic growth and job creation in India’s capital region.hindustantimes+3

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