Delhi-National Capital Region (NCR) experienced its second-highest annual gross office leasing in 2025, with a notable 19% increase in average home prices, according to a report by Knight Frank India. The report highlighted Mumbai’s resilience, maintaining a strong position in the housing market and achieving the second-strongest year for office leasing in over a decade.
In terms of residential real estate, Delhi-NCR saw a phase of measured normalization, witnessing a 9% year-on-year decline in annual sales to 52,452 units. Despite this, average home prices surged by 19% year-on-year to Rs 6,028 per sq ft, primarily driven by premiumization in Gurugram.
The NCR region recorded its second-highest annual gross office leasing at 11.3 million sq ft in 2025, accounting for 13% of India’s total leasing. Notably, Gurugram led the NCR activity, contributing 61% of annual transactions, while Noida benefited from improved infrastructure and the upcoming operations at Jewar airport.
Mumbai also had a strong performance, marking its second-strongest year for office leasing in more than ten years, transacting 9.8 million sq ft in 2025. The demand in Delhi was primarily fueled by India-facing businesses, constituting 35% of annual transactions, followed by Global Capability Centres (GCCs) at 26%.
“With a robust pipeline of high-quality supply and improving infrastructure connectivity, office market fundamentals remain firmly supportive of long-term growth,” stated Mudassir Zaidi, Executive Director – North, Knight Frank India. Additionally, in Delhi-NCR, average transacted office rents increased by 10% year-on-year during the year.
