While Gurgaon continues to be the most preferred office market in the NCR, with highest leasing volumes, Noida that follows closely, has emerged as a leading market with highest YoY growth in office leasing in 2024.

According to Knight Frank India report,  National Capital Region (NCR) recorded its best year with a record 12.7 mn sq ft of office leasing. The average deal size for transacted office spaces in NCR increased by 29% YoY with average deal size rising to  40,025 sq ft in 2024 from 30,955 sq ft in 2023.The average deal size for commercial market across leading eight markets in the country has increased by 14% from 37,976 sq ft in 2023 to 43,387 sq ft in 2024.

Gurugram continued to be the preferred office market with key micro-markets such as DLF Cyber City, Golf Course Extension Road, and Udyog Vihar remaining highly sought-after by occupiers. Noida followed as a strong performer, with locations  such as Sector 62 and -Greater Noida Expressway— emerging as preferred locations for occupiers seeking well-connected office spaces.

Noida, which has been a strong contender to the Gurugram for quality office spaces, saw a rise of 48% YoY in 2024 with over 3.92 mn sq ft of leasing in the year. While Gurugram remains the most preferred market with leasing of over 7.65 mn sq ft the region recorded a rise of 24% in the same period. Even while SBD – Delhi saw a moderation of 2% YoY in 2024, interestingly in this market, most of the leasing took place in the Aerocity location giving a further fillip to the area. Occupiers are increasingly valuing accessibility and infrastructure in this business district, which has encouraged a rise in demand for traditional office spaces.

Source: Knight Frank Research

End-User Categories in NCR’s Commercial Market

India facing operations transacted an area of 5.5 mn sq ft in 2024, constituting a share of 44% of the overall office transactions in NCR. The prominence of India-focused operations underscores the growing domestic market’s role in driving demand.This is followed by flex office spaces as end use, which accounted for 29% with a transacted area of 3.8 mn sq ft . The prominence of India-focused operations underscores the growing domestic market’s role in driving demand.

End-User wise transaction

Source: Knight Frank Research

Office space demand for flexible working space formats has grown by 2.4 times compared to last year. With increasing  requirement for quality spaces , the segment has  regained momentum as occupiers adapt to evolving workplace models. The hybrid work model, which blends remote and in-office operations, has led to a re-evaluation of office space requirements, resulting in a preference for flexibility.

“As we look back on 2024, the office market in NCR has experienced a remarkable shift, with a historic surge in transaction volumes. The market saw a 25% YoY growth, recording impressive transactions. This outstanding performance reflects the strength of India’s domestic economic conditions, a rising wave of corporate confidence, and a diverse occupier base across sectors. The shift toward hybrid work models has undoubtedly played a key role in driving demand for flexible, high-quality office spaces that meet the evolving expectations of today’s workforce. Notably, India-facing operations remain a strong driver while the growth in flex office spaces signals the evolving nature of work environments and occupier preferences, says Anand Patil, National Director, Occupier Strategy and Solutions (NCR & Kolkata)and Industrial & Logistics (NCR) .”

India facing businesses dominated the market share for both Noida and Gurugram

Source: Knight Frank Research

Transactions of office spaces in Noida totalled up to 3.92 mn sq ft in 2024. India facing businesses accounted for 42% market share in Noida followed by 26% taken up by Flex office spaces. Third party IT services consumed 16% and closely trailing were GCCs led transactions.

Out of total transactions Gurugram accounted for 7.65 mn sq ft of office transactions in 2024. Out of this, 44% was consumed by India Facing Businesses followed by flex office spaces which took up 32%. GCCs and Third Party IT services took up 20% and 4% respectively.Average transacted rent witnessed an increment of 3% reaching an average of INR 88/sq ft/ month.

Business district-wise rental movement

Source: Knight Frank Research

Gurugram zone A witnessed the highest YoY growth of 9%, recorded at INR 115-185/sq/ft/month. CBD Delhi emerged as the most expensive rental market of NCR, recorded at INR 218-360/sq/ft/month.