Commercial Real Estate in Delhi-NCR: Why Office Spaces Are the Smart Investor’s Choice

By Prakash Mehta

New Delhi, April 19, 2025: Delhi-NCR has firmly established itself as a commercial real estate hotspot, attracting a wave of investor interest thanks to its strategic location, robust infrastructure, and growing corporate footprint. The region has witnessed a consistent surge in demand for office spaces, driven by the expansion of multinational companies, IT/ITES firms, co-working operators, and start-ups. Stable interest rates, favorable policy support, and a transparent regulatory environment have further strengthened investor confidence, positioning NCR’s commercial segment as a reliable and growth-oriented asset class.

What sets office spaces in Delhi-NCR apart is their ability to offer steady rental yields and long-term value appreciation, making them a smart choice in a diversified investment portfolio. Unlike the residential segment, which often sees cyclical trends, commercial real estate especially well-located office properties continue to benefit from rising leasing activity and low vacancy rates. As the market matures and urbanization accelerates, office assets in key NCR hubs like Gurugram, Noida, and Aerocity are emerging as preferred avenues for both institutional and individual investors seeking stable returns and capital growth.

Unprecedented Growth in Demand

The commercial real estate landscape is rapidly transforming, with companies moving beyond traditional office setups in favor of dynamic, tech-enabled workspaces that blend design, efficiency, and employee-centric features. In Delhi-NCR, modern office spaces now come equipped with high-speed internet, smart access systems, energy-efficient infrastructure, and contemporary interiors tailored to enhance both collaboration and focus. Flexible workspace formats such as co-working spaces, managed offices, and serviced setups are increasingly popular among businesses aiming to scale quickly while avoiding the constraints of long-term leases and the complexities of facility management.

This shift is strongly supported by recent data. Global Capability Centres (GCCs) leased 24.9 million square feet (msf) of office space in 2024, nearly triple the 9.1 msf recorded in 2022, increasing their share of total leasing from 13 to 28 per cent. As per JLL, Delhi-NCR alone witnessed 9.4 msf of net absorption in 2024, with 2.9 msf absorbed in Q4. Much of this momentum was driven by the expansion of GCCs and multinational corporations, which collectively accounted for 56 per cent of India’s gross leasing activity during the year. The rise of plug-and-play offices reflects a broader workplace shift, where adaptability, scalability, and convenience are now central to how businesses operate and grow.

Infrastructure Growth Fuels Real Estate Expansion

Infrastructure growth has emerged as a key catalyst in driving the expansion of commercial real estate across the National Capital Region (NCR). With robust upgrades in roadways, metro networks, expressways, and airport connectivity, NCR is evolving into a more accessible and business-friendly zone. The extension of the Delhi Metro and the development of expressways like the Dwarka Expressway, Delhi-Meerut Expressway, and Noida-Greater Noida Expressway have significantly reduced travel times, opening up newer corridors for commercial activity. As a result, peripheral areas are swiftly transforming into high-potential business destinations. Established hubs such as Connaught Place, Aerocity, Cyber City, and Noida Expressway continue to thrive, thanks to state-of-the-art office spaces and mixed-use projects that seamlessly blend work, retail, and leisure.

This infrastructure-led momentum is also aligned with the projected boom in India’s retail landscape. According to a report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI), the Indian retail market valued at INR 82 lakh crore in 2024 is expected to more than double to over INR 190 lakh crore by 2034. This massive surge underscores the need for integrated developments that prioritize convenience, accessibility, and employee experience. Companies are increasingly choosing locations that offer a holistic environment, further reinforcing the role of real estate as an enabler of economic and commercial growth in the NCR.

Powering the Next Generation of Workspaces

As Delhi NCR emerges as a dynamic business destination, workspace providers like Hub and Oak are playing a pivotal role in supporting the region’s commercial evolution. With a presence across Delhi, Noida, and Gurgaon, Hub and Oak offers flexible, modern office solutions tailored to the needs of startups, SMEs, and large enterprises. Their focus on accessibility, adaptability, and user-centric design enables businesses to find spaces that align with their identity and growth plans. As infrastructure and innovation continue to fuel the region’s momentum, thoughtfully designed workspaces like those by Hub and Oak are set to become integral to the next chapter of business success in Delhi NCR.

The commercial real estate landscape in Delhi-NCR is undergoing a remarkable transformation, with office spaces emerging as a compelling choice for savvy investors. Backed by strong infrastructure growth, rising demand from global and domestic enterprises, and a shift towards flexible, tech-driven work environments, the region offers a robust platform for long-term investment. As key hubs like Gurugram, Noida, and Aerocity continue to flourish, investors are increasingly drawn to the promise of stable rental yields and sustained capital appreciation. With modern office formats redefining the way businesses operate, Delhi-NCR is not just keeping pace with global commercial trends, it is setting the stage for the next era of business growth and investment success.

The author is Chairman and Managing Director of Ocus Group