Delhi-NCR Office Occupancy Levels Expected to Reach 80.5-81% by March 2027

The office occupancy levels in Delhi-NCR are steadily increasing and are anticipated to reach 80.5-81% by March 2027, as per a recent report. The Grade-A office market in Delhi National Capital Region (NCR) is showing strong fundamentals, driven by high leasing demand surpassing new supply, according to an ICRA report.
Since March 2023, there has been a notable improvement in the market, with occupancy rising by 600 basis points to hit 78.6% by September 2025. In the fiscal year 2025, fresh supply was at 7.4 million square feet (msf), while net absorption was a robust 11.4 msf. This trend continued into the first half of fiscal year 2026, with 7.3 msf of new supply against a net absorption of 8.0 msf, fueled mainly by leasing activities from consulting and IT-BPM sectors.
Despite an expected new supply of around 14 msf in fiscal year 2026 and approximately 11 msf in fiscal year 2027, the strong leasing momentum is likely to further tighten the market. The report forecasts occupancy to reach 78.5-79.0% by March 2026, climbing to the 80.5-81.0% range by March 2027. A significant portion of the upcoming supply is already committed, with nearly 31% of the expected 17.5 msf during the H2 fiscal year 2026–fiscal year 2027 period being pre-leased.
Delhi-NCR remains a crucial office hub, representing 20% (about 204 msf) of the total Grade-A office space across India’s top six cities. Gurugram leads within NCR with a 60% market share, followed by Noida and Delhi. Key micro-markets like Sector 24 (Cyber City), Sector 62 (Noida), and Sector 48 (Gurugram) collectively make up 17% of the city’s total office supply.
While the market shows overall strength, vacancies in Delhi NCR are the highest among India’s top six cities, mainly due to lower occupancy rates of 50-55% in the peripheral business districts (PBD) of Gurugram, where some older assets have moderate occupancy levels. In terms of growth, the Delhi NCR office stock recorded a Compound Annual Growth Rate (CAGR) of nearly 6% between fiscal year 2018 and fiscal year 2025, slightly lower than the 7% CAGR observed across the top six cities.