Shifting Landscapes: Delhi-NCR's Office Market Faces Dips and Hopes for Revival

Delhi-NCR’s office market experienced a 60% drop in net leasing during January-March due to reduced new supply, reports JLL India. Although leasing fell by 28%, the long-term outlook remains positive with expected rises. Industry players including DLF and Signature Global are investing to develop office spaces in the region.

The office market in Delhi-NCR faced a challenging quarter with a notable 60% decline in net leasing to 1.5 million square feet between January and March, according to data from real estate consultant JLL India. The notable drop is attributed to a decrease in new supply. Gross leasing fell by 28%, amounting to 3 million sq ft from a previous 4.2 million sq ft during the same period last year.

Despite the downturn, JLL India maintains that the foundational aspects of the Delhi-NCR office market are strong, projecting an uptick in leasing activities in forthcoming quarters. Key industry players like DLF, Bharti Realty, and others are actively involved in the office space sector. DLF's extensive office portfolio and Signature Global's venture with RMZ Group signify significant commercial developments in Gurugram.

Across seven major Indian cities, there was a 10% increase in gross leasing to 21.5 million sq ft. This is driven by foreign companies seeking workspace for Global Capability Centres. Experts anticipate structural shifts within India's office market due to factors like AI and geopolitical tensions that influence costs, stressing the need for quality workspaces.