Will Office Occupancy Levels in Delhi-NCR Exceed 80% by March 2027?
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Synopsis
The office occupancy levels in Delhi-NCR are on course to exceed 80% by March 2027, backed by strong demand and leasing activity. This growth highlights the region's resilience in the Grade-A office market amidst increasing supply and market dynamics.
Key Takeaways
- Projected occupancy in Delhi-NCR to reach 80.5-81% by March 2027.
- Strong leasing demand from consulting and IT-BPM sectors.
- Significant recovery since March 2023, with occupancy rising to 78.6%.
- Gurugram holds a 60% market share in the NCR office market.
- Overall office stock growth at a CAGR of 6% from FY2018 to FY2025.
New Delhi, Dec 22 (NationPress) The office occupancy rates in Delhi-NCR are experiencing a consistent increase and are anticipated to reach 80.5-81% by March 2027, according to a recent report released on Monday.
The Grade-A office sector in the Delhi National Capital Region (NCR) continues to reflect strong fundamentals, supported by sustained leasing demand that surpasses new supply, as outlined in an ICRA report.
Since March 2023, the market has seen a remarkable recovery, with occupancy rising by 600 basis points to achieve 78.6% by September 2025.
“In FY25, new supply amounted to 7.4 million square feet (msf), while net absorption reached an impressive 11.4 msf. This momentum continued into the first half of FY2026, where 7.3 msf of new supply was recorded against a net absorption of 8.0 msf. The demand is largely driven by vigorous leasing activities in the consulting and IT-BPM sectors,” the report states.
Looking ahead, despite an anticipated new supply of roughly 14 msf in FY2026 and around 11 msf in FY2027, the ongoing robust leasing activity is likely to tighten the market further.
“Occupancy is projected to achieve 78.5-79.0% by March 2026 before escalating to the 80.5-81.0% range by March 2027. Notably, a considerable portion of the upcoming supply is already committed, with nearly 31% of the expected 17.5 msf during H2 FY2026–FY2027 being pre-leased,” the report highlights.
Delhi-NCR continues to be a pivotal office hub, representing 20% (around 204 msf) of the total Grade-A office space across India’s top six cities.
Gurugram dominates within NCR, holding a 60% market share, followed by Noida and Delhi.
Key micro-markets like Sector 24 (Cyber City), Sector 62 (Noida), and Sector 48 (Gurugram) collectively represent 17% of the city’s total office space.
Although the market shows overall strength, vacancy rates in Delhi NCR are the highest among India’s top six cities, largely due to lower occupancy rates of 50-55% in the peripheral business districts (PBD) of Gurugram, where some older properties are experiencing moderate occupancy.
In terms of growth, the Delhi NCR office stock recorded a Compound Annual Growth Rate (CAGR) of nearly 6% from FY2018 to FY2025, slightly below the 7% CAGR observed across the top six cities.
Point of View
I find that the projected office occupancy levels in Delhi-NCR reflect the resilience and adaptability of the market. The anticipated growth is not just a statistic; it symbolizes the ongoing recovery and transformation in the workspace landscape, driven by robust demand in key sectors.
NationPress
22/12/2025
Frequently Asked Questions
What is the projected office occupancy level in Delhi-NCR by March 2027?
The office occupancy level in Delhi-NCR is expected to reach 80.5-81% by March 2027.
Which sectors are driving the demand for office space in Delhi-NCR?
The demand is primarily fueled by the consulting and IT-BPM sectors.
What is the current occupancy rate in Delhi-NCR?
As of September 2025, the occupancy rate had increased to 78.6%.
How much new office space is expected to be supplied in FY2026?
Approximately 14 million square feet of new office space is anticipated in FY2026.
Which area in NCR has the highest market share for office spaces?
Gurugram leads the market with a 60% share of the office space in NCR.
