Curation Team
NEW DELHI: The National Capital Region (NCR) has outperformed other Indian cities in both commercial and residential real estate in the first half of 2025, with a record-breaking 7.2 million sq ft of office space leased and a steep rise in ultra-luxury home sales, according to Knight Frank India‘s latest report.
Office Market: Strongest Leasing Momentum Ever Recorded in NCR
NCR’s office leasing rose by 27% year-on-year, hitting an all-time high, underlining the region’s growing importance as a commercial hub. Gurugram, often seen as NCR’s corporate epicentre, accounted for an overwhelming 65% of the total office leasing during the period—a sharp rise of 900 basis points compared to the same period last year. Notably, the demand wasn’t just driven by India-facing enterprises. Global Capability Centres (GCCs)—companies that provide support services to global operations—ramped up their share of office leasing in NCR to 31% in H1 2025, equal to that of domestic firms. This indicates a rising confidence among global firms in NCR’s talent pool and infrastructure readiness.
The average rental value for office space in the region jumped 8% year-on-year to ₹93.5 per sq ft per month. Delhi’s Central Business District remained the costliest, commanding rentals between ₹220 and ₹390 per sq ft per month. In Gurugram, Golf Course Road and Cyber City continued to dominate both demand and pricing.
About 4.1 million sq ft of new supply was added across NCR during the same period, but the supply-demand gap for quality Grade A offices remains evident, prompting upward pressure on rents.
Residential Market: Luxury Segment Shines Amid Overall Dip
On the residential side, while overall sales and launches dipped slightly, the market story was driven by rising aspirations and a growing appetite for premium living.
Housing sales across NCR stood at 26,795 units in H1 2025, marking an 8% year-on-year drop. New launches also saw a decline of 17%, totalling 25,233 units. Yet, within this subdued environment, the luxury housing segment recorded unprecedented activity.
Sales of homes priced above ₹2 crore surged, accounting for 57% of total sales—up from 43% in H1 2024. Even more striking was the growth in ultra-luxury homes priced above ₹50 crore, where sales increased by a staggering 2,550% year-on-year. These marquee transactions were largely concentrated in Gurugram, reaffirming its position as NCR’s high-end residential capital.
The city alone contributed 51% to total housing sales and 55% to fresh supply, with sectors along Golf Course Extension Road, Southern Peripheral Road, and Dwarka Expressway witnessing heightened traction.
Noida and Greater Noida together formed 30% of NCR’s home sales, bolstered by infrastructure upgrades such as the ongoing work on the Noida International Airport in Jewar and metro expansions. The increased demand in these regions was predominantly in the mid to upper-mid segments.
Residential prices across NCR averaged ₹5,535 per sq ft in H1 2025, reflecting a healthy 14% year-on-year increase. While the premium and luxury segments gained momentum, the affordable housing category (₹25–50 lakh) saw sales drop by 37%—a result of price escalations, land cost pressures, and tighter home loan dynamics.
Shift in Buyer Sentiment and Developer Strategy
What’s emerging clearly is the buyer shift towards larger homes with better amenities, especially post-pandemic. Developers, in response, are increasingly launching high-ticket projects tailored to aspirational urban families and NRIs.
Knight Frank’s findings reflect a maturing market where both end-users and investors are focusing on long-term value. The rise of demand in studio apartments, branded residences, and gated communities equipped with health and wellness features also signal changing buyer preferences.
