Delhi NCR Leads the Charge in Office Space Growth: 61% Surge in 2024

The Delhi NCR office market saw a 61% rise in net absorption in 2024, driven by demand from GCCs and tech sectors, as per ANAROCK. Co-working spaces rose to 34% of transactions. The region's office completions slowed, yet rental rates increased, with Noida seeing significant growth.

The Delhi National Capital Region (NCR) office market experienced a dramatic 61 percent year-on-year surge in net absorption, reaching an impressive 9.5 million square feet in 2024, according to a report by ANAROCK. This growth is largely attributed to heightened demand from Global Capability Centers (GCCs) and the flourishing technology sector.

Interestingly, co-working spaces accounted for 34 percent of the total transactions, marking a notable 6 percent increase from the previous year, while the IT-ITeS sector's share dipped by 3 percent to 29 percent. Consulting business occupiers made up 12 percent of overall transactions, reflecting diverse sector expansion.

Peush Jain, Managing Director of Commercial Leasing and Advisory at ANAROCK Group, referred to 2024 as a transformative year for the office real estate market, highlighting strategic expansions across sectors and substantial rental growth in major markets. NCR alone captured 19 percent of the total 50 million square feet absorbed in India's top seven cities.

The report also noted a 22 percent decline in new office completions in NCR, down to 5.9 million square feet in 2024 from 7.6 million square feet the previous year. Despite this, the average office rental rate climbed 5 percent to Rs 86 per square foot per month. Noida stood out as the dynamic micro-market with a 6 percent annual rental growth, yet remained the most affordable.

Anarock's outlook anticipates positive growth in the Indian office market in 2025, driven by the recovery of global economies, especially in technology, which is expected to bolster demand for office spaces in the nation's top cities.

(With inputs from agencies.)