Delhi’s office real estate market is set for a major revival, with nearly 5 million sq. ft. of fresh supply expected by 2027 after almost a decade of stagnation, according to a new report by CBRE South Asia and CII.

The study, unveiled at the 2nd CII Delhi Real Estate Summit 2025, highlights how progressive policies, the Delhi Master Plan 2041, and rising investor confidence are reshaping the capital’s office, retail, and residential landscape.

The report said that the office supply in the capital has been limited since 2016, largely due to a scarcity of developable land. However, this trend is set to change, with the market expected to add approximately 5 million sq. ft. of new office space between 2025 and 2027.

According to Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, Delhi’s strong economic potential has helped its property market not just to bounce back, but also start on a path of steady, high-quality growth.

“New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability and design. This change shows that the city is becoming more affluent and that people want a better quality of life. The market is also becoming more mature, thanks to strong and clear regulations. This has given people a lot of confidence and attracted significant investment. With the Delhi Master Plan 2041 guiding future growth, the city is ready to play a pivotal role in India’s real estate story,” he said.

Delhi’s real estate sector is on a trajectory of sustained growth, driven by a combination of progressive policies, visionary urban planning, and cutting-edge technology. Government initiatives and regulatory oversight from bodies such as Delhi RERA (DLRERA) are fostering a new era of transparency, enhancing the city’s attractiveness to investors. This momentum is further bolstered by the Delhi Master Plan 2041, the government’s comprehensive blueprint for urban expansion, which integrates rural areas and prioritises affordable housing.

During January to June (H1 2025), Delhi recorded an office space absorption of approximately 400,000 sq. ft., driven by strong business confidence in core business districts. The leading sectors driving this demand were research, consulting, and analytics (39% share), followed by flexible space operators (23%) and BFSI (18%), collectively contributing to around 80% of total leasing activity in the six-month period.

In the first half of the calendar year, Delhi also recorded a healthy retail space absorption of about 230,000 sq. ft., with high streets accounting for 72% of the total leasing. Fashion and apparel retailers demonstrated the highest demand with a 35% share, followed by homeware and department stores (20%) and food and beverage operators (17%), underscoring the growing popularity of lifestyle-driven and experiential retail formats across key locations.

These trends have been further strengthened by rising disposable incomes and the entry of global luxury brands. With the growing availability of premium spaces and more brands looking to enter the capital city, the momentum of retail leasing is expected to remain strong in the coming quarters.

On the residential front, Delhi-NCR’s market has demonstrated a robust growth in H1 2025, dominated by luxury units. In the first six months, the region witnessed about 21,000 new launches, 35% higher year-on-year, and an equally healthy sales of over 21,000 units. High-end (31%), premium (26%), and luxury (18%) segments together accounted for 75% of total sales.

Led by strong demand and restricted supply, capital values, particularly in South-East and South-West Delhi, have also witnessed significant appreciation. Major infrastructure projects, including metro network expansions and new expressways, are poised to make peripheral areas more attractive for development and investment.