Office space supply in Delhi to surge by 5 million sq ft by 2027: CBRE-CII report
A key driver of this momentum is the government’s ‘Delhi Master Plan 2041’, a comprehensive roadmap aimed at urban expansion that integrates rural regions and emphasizes affordable housing.
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Delhi’s office real estate sector is gearing up for a substantial surge in supply, with approximately 5 million square feet of new office space expected to be added over the next two years, according to a report released on Monday by CBRE in partnership with the Confederation of Indian Industry (CII).
The report highlights that the national capital’s real estate market is now on a trajectory of sustained growth, fuelled by progressive government policies, strategic urban planning, and advanced technology adoption. Notably, initiatives such as regulatory oversight by Delhi RERA (DLRERA) are fostering transparency, making the city an increasingly attractive destination for investors.
A key driver of this momentum is the government’s ‘Delhi Master Plan 2041’, a comprehensive roadmap aimed at urban expansion that integrates rural regions and emphasizes affordable housing. Speaking on the evolving market dynamics, Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, said, "New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability, and design. This shift reflects the city’s growing affluence and rising demand for a better quality of life."
The report further notes that business confidence remains robust, with Delhi recording an office space absorption of around 400,000 square feet during January to June 2025 (H1 2025), predominantly in core business districts. The demand was driven by research, consulting, and analytics firms, contributing 39% of total leasing activity, followed by flexible space operators (23%) and the BFSI sector (18%).
Retail space also saw healthy traction, with about 230,000 square feet absorbed during H1 2025. High streets led the way, accounting for 72% of the total leasing activity. The most sought-after categories were fashion and apparel retailers (35%), homeware and department stores (20%), and food & beverage operators (17%), indicating a clear preference for lifestyle-oriented and experiential retail formats.
On the residential front, the Delhi-NCR region demonstrated strong growth in H1 2025, especially in the luxury segment. The market witnessed approximately 21,000 new launches – up 35% year-on-year – and sales exceeding 21,000 units during the same period. High-end, premium, and luxury properties together accounted for 75% of total sales, reinforcing the rising demand for upscale living spaces.
With regulatory reforms, master planning, and changing consumer preferences aligning, Delhi is poised to play a pivotal role in India’s real estate growth story in the years ahead.
