India’s office market soars, Delhi-NCR leads APAC growth in 2026
DELHI, INDIA — India’s office market is accelerating in the Asia-Pacific (APAC) region, with the Delhi-NCR area emerging as a key driver of corporate expansion and investment.
In a press release shared by ICCPL and published in NewsVoir, leasing activity across major cities has remained robust despite global economic uncertainty, positioning India as a cost-efficient and scalable hub for multinational operations.
India’s office leasing hits record high
India’s largest office markets — Bengaluru, Mumbai, and Delhi-NCR — achieved a total of 50 million square feet in leasing during 2025. This represents a 21% increase from the previous year and marks the highest annual absorption rate in history.
The growth is driven by structural factors rather than short-term optimism. Multinational firms are scaling operations in India beyond traditional support roles into core business functions, while office demand spans technology, banking, financial services, and insurance (BFSI), consulting, and manufacturing back offices.
Institutional investors continue to favor Grade A assets, reflecting confidence in long-term returns.
“Companies are clearly thinking three to five years ahead, aligning expansion with business growth rather than short-term market cycles,” said Harinder Singh Hora, Founder Chairman of Reach Group.
Delhi-NCR commercial real estate drives APAC growth
According to Cushman & Wakefield, Delhi-NCR achieved its highest office leasing record in 2025 when it leased 15.8 million sq ft of office space that represented a 24% increase from the previous year.
The information technology and business process management (IT–BPM) sector led demand with a 37% share, followed by professional services (15%) and engineering and manufacturing firms (14%). Gurugram CBD saw rents rise 12–15% year over year, reflecting a premium market trend.
“Much of the incremental demand in Gurugram is clearly coming from GCC expansion…many businesses now house core functions, R&D, analytics, and leadership teams,” Sandeep Chhillar, Founder and Chairman of Landmark Group, noted.
“This ‘flight to quality’ is reshaping absorption trends in Gurugram and strengthening the case for premium developments in established business districts,” Chhillar added.
Similarly, the combination of competitive rental prices, available Grade A office space and the construction of an international airport has transformed Noida into a city that drives economic development.
“For global businesses, scalability and infrastructure certainty matter more than ever. The airport positions this corridor as a strategic North India business gateway,” said Amish Bhutani, Managing Director of Group 108.
With a diversified mix of demand from global capability centers (GCCs), BFSI, consulting, and domestic corporates, it highlights the importance of supply discipline to maintain sustainable growth.
“The next few months will be about maintaining equilibrium, ensuring that new supply aligns with genuine absorption rather than speculative development,” said Viren Mehta, Founder & Director of ElitePro Infra.
As India strengthens its APAC leadership in office markets, Delhi-NCR’s trajectory highlights the region’s appeal for outsourcing, GCCs, and multi-year corporate planning, signaling a stable and resilient environment for both investors and occupiers alike.
