July 9, 2025 |
Delhi NCR’s Real Estate Rates on Fire: Record Office Deals and Rs 50 Crore Home Sales Surge—what’s Fuelling the Twin Boom?
Delhi NCR’s real estate market is witnessing a twin boom with record office leasing of 7.2 million sq ft and a 2,550 per cent surge in ultra-luxury home sales above Rs 50 crore in H1 2025. Gurugram leads both commercial and residential segments, as demand shifts towards premium offerings and global firms expand their footprint.
From buzzing office towers in Gurugram to multi-crore luxury apartments in Delhi’s prime locations, NCR’s real estate market is scripting a tale of two booming segments. In the first half of 2025, the region not only recorded its highest-ever office leasing activity but also led the country in ultra-luxury home sales, according to a new report by Knight Frank India. Whether its global companies setting up shop or high-net-worth individuals snapping up Rs 50 crore homes, NCR is clearly where the action is.
NCR’s office market hits record 7.2 million sq ft
NCR’s office space leasing touched an all-time high of 7.2 million sq ft in H1 2025, up 27 per cent year-on-year. This makes NCR the second-largest commercial office market in the country, after Bengaluru.
“With average deal sizes reaching 54,000 sq ft and Global Capability Centres now commanding 31 per cent of leasing activity, we’re witnessing a fundamental shift,” said Mudassir Zaidi, Executive Director – North, Knight Frank India.
The average commercial rate rose 8 per cent to Rs 93.5 per sq ft per month during the period, driven by strong demand and limited premium-grade supply.
Gurugram emerges as leasing hub; Noida loses share
Gurugram led NCR’s commercial real estate in H1 2025 with a 65 per cent share in total leasing—up 900 basis points from last year. Areas like NH-48, Udyog Vihar, and DLF Cyber City continued to attract large occupiers.
Noida’s leasing share dropped from 41 per cent to 24 per cent due to limited new supply, while Delhi’s central and secondary business districts saw modest growth.
Global Capability Centres (GCCs) also expanded their footprint, growing from 11 per cent of leasing activity last year to 31 per cent in H1 2025.
NCR sees slowdown in home sales and new launches
On the residential side, NCR’s market is slowing down after several years of strong growth. New home launches dropped by 17 per cent to 25,233 units in H1 2025, while sales declined by 8 per cent to 26,795 units.
The slowdown is linked to affordability challenges for mid-income buyers and a shift in interest among wealthy buyers and NRIs toward high-end and ultra-luxury homes.
Ultra-luxury homes above Rs 50 crore see explosive demand in NCR
Homes priced above Rs 2 crore now account for 57 per cent of total residential sales in NCR—up from 43 per cent last year.
There was a sharp rise in premium housing sales. The ultra-luxury segment—homes priced above Rs 50 crore—saw an astounding 2,550 per cent jump in sales, with some projects seeing 60–70 per cent bookings immediately after launch. Properties priced between Rs 20–50 crore also jumped by 1,233 per cent.
“The market’s pivot towards premiumisation tells a fascinating story of changing aspirations,” Zaidi noted. “Buyers are prioritising quality and lifestyle over speculation.”
Gurugram continues to attract homebuyers with luxury options
Just like in the office segment, Gurugram maintained its leadership in the housing market as well. It contributed 51 per cent of NCR’s total residential sales and 55 per cent of new launches in H1 2025.
High demand continues along well-connected corridors like Dwarka Expressway, Sohna Road, and Southern Peripheral Road. These areas offer a mix of luxury living, upgraded infrastructure, and improved connectivity.
Noida and Greater Noida together accounted for 30 per cent of sales, with Greater Noida gaining an edge due to larger land parcels and upcoming infrastructure projects like the Noida International Airport in Jewar.
Residential prices touch Rs 5,535 per sq ft
The average residential price in NCR rose 14 per cent to Rs 5,535 per sq ft. Premium locations such as Golf Course Road and South Delhi led the growth. However, demand in the affordable segment weakened, with sales of homes priced between Rs 25 lakh and Rs 50 lakh dropping 37 per cent year-on-year.
Knight Frank noted that the region’s rapid infrastructure growth—such as expressways, metro extensions, and new airports—continues to be a key driver for both office and residential demand.
NCR outlook strong as infrastructure and buyer confidence grow
As the second half of 2025 begins, NCR’s real estate market appears to be evolving into a more mature, end-user-driven landscape. Developers are expected to focus more on premium offerings, while the office sector remains buoyant due to continued global interest.
The region’s dual success in commercial and premium residential segments signals a long-term shift in market fundamentals, supported by robust infrastructure and changing buyer expectations.
Source : FE
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