Delhi Commercial Real Estate: Market Outlook - Q1 2026

The Delhi-NCR commercial real estate market entered 2026 with continued leasing activity across established and emerging office hubs. Supported by an extensive metro network, diverse business districts and a growing flexible workspace ecosystem, the region continues to offer a broad range of office options for occupiers.

Delhi-NCR Office Market at a Glance

In Q1 2026, Delhi-NCR recorded total office stock of approximately 151.53 million sq. ft., with an overall vacancy rate of 19%. Around 1.8 million sq. ft. of new office supply entered the market during the quarter, while gross absorption stood at 2.3 million sq. ft., representing a 30% quarter-on-quarter decline.

Net absorption during the quarter was approximately 1.5 million sq. ft.

Conventional office space continued to account for the majority of leasing, recording 1.4 million sq. ft., or 61% of activity. Flexible workspace accounted for 0.9 million sq. ft., representing 39%.

Sector-wise, flexible workspace operators contributed 27% of leasing, followed by engineering and manufacturing at 21% and IT/BPM at 20%.

Large office transactions remained significant during the quarter. Deals involving spaces of 100,000 sq. ft. and above accounted for 47% of transaction activity. Spaces below 50,000 sq. ft. contributed 34%, while transactions between 50,000 and 99,999 sq. ft. represented 19%.

Performance Across Key Delhi-NCR Micro-Markets

Gurugram remained one of the largest office markets, with approximately 49.34 million sq. ft. of stock, while Noida had around 43.73 million sq. ft. Noida recorded 0.67 million sq. ft. of gross absorption during Q1, along with 0.18 million sq. ft. of new supply.

Cyber City continued to show tight availability, with a vacancy rate of just 1.4% across approximately 13.98 million sq. ft. of stock. MG Road recorded a 6.3% vacancy rate, while NH8-Prime stood at 7.8% and Golf Course Road at 8.5%.

Delhi CBD had approximately 1.53 million sq. ft. of stock with a 19.2% vacancy rate, while South-East Delhi recorded 7.09 million sq. ft. of stock and 12.5% vacancy.

Connectivity Supporting the Office Market

Metro connectivity remains an important strength of the Delhi-NCR office market. The report highlights over 390 km of operational metro lines, connecting major commercial and residential areas across Delhi, Gurugram, Noida and Faridabad. Phase IV expansion is also under construction, with additional corridors planned to strengthen connectivity further.

For detailed insights into Delhi-NCR’s Q1 2026 office market, including micro-market performance, leasing trends, transaction sizes and metro connectivity, download the complete Delhi Q1 2026 Market Overview PDF.