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In 2024, NCR achieved a record 12.7 mn sq-ft of office-leasing, with the average deal-size rising 29% YoY to 40,025 sq-ft. Gurugram remained dominant, leasing 7.65 mn sq-ft, driven by DLF Cyber City and Udyog Vihar, while Noida saw a 48% rise, leasing 3.92 mn sq-ft, boosted by sectors like 62 and Greater Noida Expressway. India-facing businesses led demand, constituting 44%, followed by flex spaces at 29%. Average rents increased by 3% to INR 88/sq ft/month, with CBD Delhi being the priciest. The hybrid work model and demand for quality spaces spurred leasing growth.
In 2024, the National Capital Region (NCR) achieved its highest-ever office leasing activity, recording 12.7 million sq ft of transactions. According to Knight Frank India, the average office deal size in NCR rose by 29% year-on-year, reaching 40,025 sq ft from 30,955 sq ft in 2023. Across the country's leading eight commercial markets, the average deal size increased by 14%, growing from 37,976 sq ft in 2023 to 43,387 sq ft in 2024. Advertisement
Gurugram maintained its position as the most preferred office market in NCR, accounting for 7.65 million sq ft of leasing activity, reflecting a 24% year-on-year rise. Key micro-markets such as DLF Cyber City, Golf Course Extension Road, and Udyog Vihar remained highly sought-after due to their connectivity and infrastructure. Noida emerged as a strong contender, recording an impressive 48% growth in annual leasing volumes to reach 3.92 million sq ft. Prime locations such as Sector 62 and the Greater Noida Expressway attracted occupiers seeking well-connected, high-quality office spaces.
Despite a marginal 2% decline in leasing activity in SBD-Delhi, Aerocity continued to see robust demand, reinforcing its position as a prominent business district known for accessibility and infrastructure. Overall, India-focused operations led to office space transactions in NCR, accounting for 5.5 million sq ft or 44% of the total share. Flexible office spaces followed, with a 29% share and 3.8 million sq ft of transacted space. The growing domestic market and evolving workplace models contributed to the demand for flexibility, as occupiers adapted to hybrid work practices combining remote and in-office operations.
In Noida, India-facing businesses dominated leasing activity with a 42% share, followed by flexible office spaces at 26%. Third-party IT services accounted for 16%, while GCCs contributed to the remaining share. Similarly, in Gurugram, India-facing businesses accounted for 44% of the total transactions, while flexible spaces comprised 32%. GCCs and third-party IT services made up 20% and 4%, respectively.
The demand for flexible workspaces has surged, growing 2.4 times year-on-year, reflecting occupiers' preference for adaptable and high-quality spaces. Additionally, the average transacted rent in NCR saw a 3% increase in 2024, reaching INR 88 per sq ft per month. Gurugram's Zone A posted the highest rental growth, rising 9% to INR 115-185 per sq ft per month. Meanwhile, CBD Delhi retained its position as the priciest market, with rents ranging between INR 218-360 per sq ft per month.
This performance highlights the continued evolution of NCR's office market, driven by hybrid work trends, robust domestic demand, and the need for flexible, well-located office spaces.
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