Delhi NCR’s office real estate market is expected to witness a steady improvement in occupancy levels, with overall office occupancy projected to cross 80 percent by the end of FY2027, according to a recent assessment by rating agency ICRA. The outlook reflects strengthening demand for Grade-A office spaces across the region, supported by sustained leasing activity and improving demand–supply dynamics.
Office occupancy in Delhi NCR has shown consistent improvement over the last few years. From March 2023 to September 2025, occupancy levels increased by around 600 basis points, reaching close to 79 percent. This rise has been driven largely by higher net absorption compared to new supply additions, indicating healthy demand for quality commercial spaces.
During FY2025, net absorption in the region stood at approximately 11.4 million square feet, while new supply additions were limited to about 7.4 million square feet. A similar trend continued in the first half of FY2026, with net absorption exceeding new completions. The sustained absorption has helped reduce vacancy levels across key office micro-markets in the National Capital Region.
Demand for office space has been led primarily by the IT-BPM and consulting sectors, which continue to expand their footprint in major business districts. Despite a sizeable pipeline of upcoming supply estimated at around 25 million square feet over FY2026 and FY2027, a significant portion of this space has already been pre-leased. Pre-leasing levels of over 30 percent are expected to support occupancy growth and limit sharp increases in vacancy.
ICRA estimates that office occupancy in Delhi NCR is likely to reach around 78.5 to 79 percent by March 2026, before crossing the 80 percent mark by FY2027. The region remains one of India’s largest commercial office markets, accounting for roughly 20 percent of the total Grade-A office stock across the top six cities.
Within the NCR region, Gurugram continues to dominate the office market, contributing nearly 60 percent of the total stock, followed by Noida and Delhi. Key micro-markets such as Cyber City, Golf Course Road, and Noida Sector 62 remain major drivers of leasing activity. The report also indicates a moderate rise in office rentals over the medium term, supported by strong demand and improving occupancy trends
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