Office occupancy levels in the Delhi–NCR market are steadily improving and are projected to cross 80 per cent by March 2027, supported by strong leasing demand that continues to outpace new supply.

According to a report by ICRA, the Grade-A office segment in the region has staged a sharp recovery since March 2023, driven primarily by sustained demand from consulting and IT-BPM occupiers. Despite a healthy pipeline of new completions over the next two years, rising pre-commitments and robust absorption are expected to further tighten the market, reinforcing Delhi–NCR’s position as one of India’s most significant office hubs.

The market has witnessed a significant turnaround since March 2023, with occupancy increasing by 600 basis points to reach 78.6 per cent by September 2025. “In FY25, while fresh supply stood at 7.4 million square feet (msf), net absorption was a robust 11.4 msf. This trend persisted into the first half of FY2026, with 7.3 msf of new supply against a net absorption of 8.0 msf. The demand is primarily fuelled by healthy leasing activity from the consulting and IT-BPM sectors,” the report mentioned.

Looking ahead, despite an expected new supply of approximately 14 msf in FY2026 and around 11 msf in FY2027, the continued healthy leasing momentum is expected to further tighten the market. “Occupancy is forecast to reach 78.5-79.0 per cent by March 2026 before climbing to the 80.5-81.0 per cent range by March 2027. Notably, a significant portion of the upcoming supply is already committed, with nearly 31 per cent of the approximately 17.5 msf expected during H2 FY2026–FY2027 period being pre-leased,” said the report.

Delhi-NCR remains a critical office hub, accounting for 20 per cent (approximately 204 msf) of the total Grade-A office space across India’s top six cities. Gurugram is the undisputed leader within NCR, commanding a 60 per cent market share, followed by Noida and Delhi. Key micro-markets such as Sector 24 (Cyber City), Sector 62 (Noida), and Sector 48 (Gurugram) collectively account for 17 per cent of the city’s total office supply. While the market exhibits overall strength, vacancies in Delhi NCR are the highest among India’s top six cities.

This is largely attributed to lower occupancy rates of 50-55 per cent in the peripheral business districts (PBD) of Gurugram, where some older assets have moderate occupancy levels. In terms of growth, the Delhi NCR office stock recorded a Compound Annual Growth Rate (CAGR) of nearly 6 per cent between FY2018 and FY2025, slightly lower than the 7 per cent CAGR observed across the top six cities.