Delhi Real Estate Booms: A Decade of Growth on the Horizon

Delhi's real estate market is set for substantial growth with 5 million square feet of new office space projected between 2025-2027. The influx is driven by economic potential, visionary urban planning, and cutting-edge technology, enhancing investor confidence. Retail and residential sectors also show robust growth, signaling a burgeoning urban ecosystem.

After nearly a decade of limited supply, Delhi's office market is now gearing up for significant growth. According to real estate consulting firm CBRE, the city is expected to add around 5 million square feet of new office space between 2025 and 2027. Since 2016, the supply has been constrained due to a scarcity of developable land.

Anshuman Magazine, CBRE's Chairman and CEO for India, South-East Asia, Middle East, and Africa, notes that Delhi's economic vitality has not only facilitated recovery but has also set the stage for high-quality growth. Emphasizing the demand for amenities, sustainability, and design, Magazine highlights a shift in market preferences reflecting an affluent population seeking improved quality of life.

The report underscores a sustainable growth trajectory aided by progressive policies, visionary urban planning, and innovative technology. Initiatives like the Delhi Master Plan 2041 and oversight from bodies such as DLRERA have enhanced transparency, making the city increasingly attractive to investors.

In the first half of 2025, Delhi saw office space absorption of approximately 400,000 sq. ft., largely fueled by the research, consulting, analytics, flexible space operators, and BFSI sectors, which comprised about 80% of leasing activity. The retail sector also recorded significant absorption, driven by demand from fashion, homeware, and lifestyle brands amid rising incomes and new global entries.

The residential market, especially luxury segments, also demonstrated robust growth in H1 2025, with 21,000 new launches and equivalent sales figures. The ongoing infrastructure developments, including metro expansions and expressways, are primed to enhance peripheral areas, further boosting investment prospects.

(With inputs from agencies.)