New Delhi, Jan 9 (NationPress) The Delhi-National Capital Region (NCR) achieved its second-highest annual gross office leasing in 2025, with average home prices experiencing a remarkable 19 percent increase year-on-year, according to a recent report.

Knight Frank India highlighted in their findings that Mumbai continues to display resilience, maintaining its status as the largest player in the housing sector and recording its second-strongest year for office leasing in over a decade.

On the residential side, Delhi-NCR is undergoing a phase of measured normalization, as annual sales saw a 9 percent decline year-on-year, totaling 52,452 units. Despite this, average home prices surged 19 percent YoY to Rs 6,028 per sq ft, largely driven by the premium market in Gurugram.

NCR achieved its second-highest annual gross office leasing, totaling 11.3 million sq ft in 2025, despite an 11 percent decline YoY from the previous year’s peak. This accounted for 13 percent of India’s total leasing activity. The second half of 2025 saw leasing in NCR reach 4.1 million sq ft, down 42 percent YoY due to a strong base and limited availability of Grade A spaces. Completions for the year rose to 9.6 million sq ft, marking the highest since 2019.

Gurugram led the activity in NCR, contributing 61 percent of annual transactions, while Noida benefited from enhanced infrastructure and the impending launch of Jewar Airport.

Mumbai achieved its second-strongest year for office leasing in over a decade, with 9.8 million sq ft transacted in 2025, reflecting a 5 percent drop YoY. Leasing volumes for the second half of 2025 reached 4.3 million sq ft, bolstered by large-scale deals in suburban areas. The share of Global Capability Centres increased to 27 percent in the second half of the year, up 9 percent YoY, while India-facing occupiers represented 40 percent of total demand.

In Delhi, demand remained strong, driven by India-facing businesses, which accounted for 35 percent of annual transactions, closely followed by Global Capability Centres at 26 percent.

Grade A assets dominated the demand across both regions, constituting 84 percent of transactions in Delhi.

“With a robust pipeline of high-quality supply and improving infrastructure connectivity, the fundamentals of the office market remain firmly supportive of long-term growth,” stated Mudassir Zaidi, Executive Director – North, Knight Frank India.

In Delhi-NCR, the average transacted office rents also saw a 10 percent increase YoY during the year, driven by tight availability in prime Grade A micro-markets.

aar/na