Commercial real estate across the National Capital Region entered a phase of consolidation in 2025, with Gurugram firmly emerging as the region’s growth engine for both office and retail segments. Strong leasing momentum, falling vacancy levels and sustained occupier confidence—driven by global capability centres, IT services firms and consumption-led retail—helped the city transition from post-pandemic recovery to a more resilient, demand-led commercial cycle.

According to Knight Frank, a global real estate consultancy firm, Delhi-NCR recorded its highest-ever office leasing of around 7.2 million square feet in the first half of 2025.Gurugram alone accounted for nearly 65% of this absorption, marking a rise of about 900 basis points compared to the same period last year. The surge was driven largely by strong demand from global capability centres (GCCs), IT services firms and domestic corporates for Grade-A office spaces, which refer to premium-quality commercial buildings typically located in prime business districts, with modern infrastructure, including large floor plates, advanced HVAC systems, high-speed elevators, 24/7 power backup, robust security, ample parking and strong digital connectivity.

Retail real estate mirrored this momentum. A report by CBRE, a global real estate consultancy firm, showed organised retail leasing in NCR rose nearly 25% in H1 2025, signalling a clear return of consumption-led growth. Fashion and apparel brands drove about 35% of leasing activity, while homeware and departmental stores together accounted for around 30%. Vacancy levels in Grade-A retail spaces in Gurugram dropped below 3%, tightening supply.

Pankaj Jain, founder and chairman of SPJ Group, said 2025 sharpened the industry’s understanding of where real retail demand is forming in the city. “Beyond established corridors, retail space demand gained traction in micro-markets where residential catchments have matured, but organised retail supply remains limited. Notably, pockets of Old Gurugram – long driven by dense, self-sustained neighbourhoods — re-emerged as strong consumption hubs as infrastructure upgrades, improved road connectivity, and renewed developer interest unlocked latent demand,” he said.

The momentum broadened in the third quarter. Cushman & Wakefield data showed NCR recorded 5.1 million sq ft of gross office leasing in Q3 2025, a 10% quarter-on-quarter rise and a 56% year-on-year jump. Gurugram dominated activity with a 72% share, led by NH-8 (Prime) and Cyber City. IT–BPM firms accounted for 35% of leasing, followed by engineering and manufacturing at 19% and BFSI at 9%.

Retail leasing also accelerated in Q3, touching 0.5 million sq ft – up 70% quarter-on-quarter and 88% year-on-year. Gurugram led with a 68% share. Food and beverage operators accounted for about 40% of leasing, with main streets outperforming malls and capturing nearly 58% of F&B demand, reflecting a shift towards experience-led, high-visibility retail.

Ajay Malik, chief strategy officer at Rise Infraventures Ltd, said, “If there was one takeaway from 2025, it’s that India’s commercial real estate moved from reaction to strategic planning… As 2026 begins, the sector looks less volatile, more predictable, and ready for long-term capital.”

Harinder Singh Hora, founder chairman of Reach Group, said that 2025 settled the debate between formats. “Retail performance is increasingly being defined by catchment depth, location advantage, visibility, design discipline, and tenant curation rather than format alone,” he said.