NCR Office Market Surges by 61%

Swift Summary

• The National Capital Region (NCR) office market recorded a 61% year-on-year increase in net absorption, reaching 9.5 million square feet in 2024.
• Growth is primarily driven by demand from Global Capability Centers (GCCs) adn the technology sector.
• Co-working spaces accounted for 34% of transactions, an increase from the previous year.
• The IT sector’s share decreased to 29%, with consulting business occupiers contributing 12%.
• New office completions dropped by 22% to 5.9 million sq ft; vacancy rates reduced by 2.6% to 22.6%.
• Average rental increased by 5% year-on-year to Rs.86/sq ft/month, Noida showed a dynamic rental growth of 6%.
• Positive absorption trends and consistent rental recognition indicate strong occupier confidence despite challenges with new supply and vacancy rates.

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Indian Opinion Analysis

The meaningful growth seen in NCR’s office market reflects robust demand catalyzed by GCCs and the tech industry as primary drivers,underscoring India’s role within these sectors globally. While increased co-working space transactions indicate evolving workspace requirements, the decrease in IT sector share suggests shifting occupation trends.

Despite positive signals such as lower vacancy rates and rising rents pointing towards healthier fundamentals,challenges remain due to a reduction in new completions which could constrain future growth if not addressed appropriately.

this surge aligns with broader national trends predicting sustained commercial real estate expansion fuelled by economic revival efforts targeted at key metros like NCR.

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