Delhi-NCR Rides GCC Expansion, Corporate Occupier Demand to Strengthen Office Market Momentum

By Sonakshi Wadhawan

For years, the office market in Delhi-NCR has been discussed in extremes. Either it was too large, too scattered, and too slow to absorb supply, or it was on the verge of a sharp comeback driven by infrastructure and scale. The reality, as usual, has sat somewhere in between.

What is different now is not a sudden spike in leasing, but the nature of demand. The market is being shaped less by headline absorption numbers and more by who is leasing space, how they intend to use it, and which buildings they are willing to ignore altogether. In 2025, gross office absorption in NCR was about 13.6 million square feet (msf). On paper, that keeps the region firmly among India’s top two office markets. But numbers like these have been posted before. The more meaningful development has been the narrowing gap between supply and demand over the last few quarters.

During the first half of FY2026, net absorption of around 8 msf slightly exceeded new supply. Occupancy levels are now inching towards the high-70s. Several landlords tracking portfolio-level performance believe the 80 per cent mark, once considered aspirational for NCR, is finally within reach. Average Grade-A rentals are moving up, but not dramatically. Where the action is sharper is in select buildings and micro-markets, especially newer developments in Gurugram. In contrast, older stock, even in recognisable locations, is facing longer vacancy cycles unless pricing expectations soften.

A large part of this demand shift is coming from Global Capability Centres, though not in the way they were understood a decade ago. These are no longer overflow offices built purely for cost efficiency. Many GCCs now house core engineering, analytics, and product teams that sit closer to global decision-making than local support. NCR has picked up a meaningful slice of this, particularly from firms that value managerial depth and engineering talent. What stands out is how these occupiers evaluate space.

Alongside GCCs, corporate occupiers are also rethinking their footprint. The hybrid work phase did not eliminate offices, but it did force companies to reassess what they actually need. The result has been consolidation rather than contraction. Fewer offices, better buildings. Occupiers are gravitating towards Grade-A assets with better amenities, sustainability certifications, and flexible layouts.

The flex workspace segment reflects this shift clearly. Delhi-NCR has around 12.5 msf of flex inventory today, but the demand profile has changed. Enterprise occupiers now account for nearly 70 per cent of uptake. These are not short-term experiments. Flex is being used as a strategic layer, expansion buffers, project teams, temporary swing space, often alongside long-term leases.

Geographically, Gurugram continues to do the heavy lifting, accounting for roughly two-thirds of regional leasing. Cyber City and surrounding districts remain the default choice for large occupiers. What has changed is the widening of interest beyond the traditional core. Corridors along the Golf Course Extension Road, Southern Peripheral Road and Noida Expressway are seeing more site visits and conversions, particularly from flex operators and GCCs looking for newer stock at workable rentals. The upcoming Noida International Airport has added a longer-term layer of confidence, even if its immediate impact on office leasing remains limited.

Around 14 msf of new supply is expected in FY2026. A good portion is already pre-leased, which offers some comfort. But this phase of the market will be less forgiving of mediocre execution. Location alone will not be enough. Design quality, operational efficiency, and the ability to support evolving occupier needs will increasingly determine outcomes.

Delhi-NCR’s office market is not in a dramatic upswing. What it is experiencing instead is a gradual sorting between buildings that remain relevant and those that do not. For developers, that distinction is becoming sharper. For occupiers, the window to secure genuinely good space is narrowing, even if the broader market still looks balanced on the surface.

The author is Chief Business Officer (CBO), Office Transactions

DISCLAIMER: The views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect Realty & More’s views.