Delhi Real Estate Set for Major Growth with 5 Million Sq. Ft. of New Office Space

Delhi’s real estate market is gearing up for strong growth, with nearly 5 million square feet of new office space expected in the next two years, according to a new report.

The city’s property sector has been expanding steadily, supported by government policies, better planning, and new technology. Regulatory bodies like Delhi RERA are making the market more transparent, boosting investor confidence, said CBRE in a joint report with the Confederation of Indian Industry (CII).

A key driver of this growth is the Delhi Master Plan 2041, a long-term development roadmap that includes urban expansion, integration of rural areas, and affordable housing.

“Buyers and businesses today are looking beyond location. They want amenities, sustainable design, and quality living. This shift reflects rising incomes and changing expectations,” said Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa.

In the first half of 2025, Delhi recorded about 400,000 sq. ft. of office space absorption, mainly in core business districts. Research, consulting, and analytics firms led demand with a 39% share, followed by flexible office operators (23%) and BFSI companies (18%). Together, these sectors made up nearly 80% of total leasing.

The retail market also showed strong activity. From January to June 2025, Delhi absorbed around 230,000 sq. ft. of retail space, with high streets accounting for 72% of the demand. Fashion and apparel brands led leasing with 35%, followed by homeware and department stores (20%) and food and beverage outlets (17%). This points to growing interest in lifestyle-driven shopping and experiential retail formats.

On the residential side, Delhi-NCR saw impressive growth in the first six months of 2025. Around 21,000 new housing units were launched—35% higher than the same period last year—and over 21,000 units were sold. Luxury, premium, and high-end homes dominated the market, together making up 75% of sales.

With strong demand across office, retail, and housing segments, and guided by the Delhi Master Plan 2041, the capital is set to remain a major hub in India’s real estate story.