New Delhi [India], March 16 : The Delhi National Capital Region (NCR) office market recorded a 61 per cent year-on-year increase in net absorption, the highest among the top 7 cities, to reach 9.5 million square feet in 2024, said a report by ANAROCK.
According to the real estate consultancy firm, this was primarily driven by robust demand from Global Capability Centers (GCCs) and the technology sector.
The co-working sector accounted for 34 per cent of the total transactions, marking a 6 per cent increase from 2023.
Conversely, the IT-ITeS sector's share decreased by 3 per cent to 29 per cent, while consulting business occupiers contributed 12 per cent to the overall transactions.
Peush Jain, MD-Commercial Leasing and Advisory, ANAROCK Group, said that 2024 emerged as a transformative year for the office real estate market, characterized by robust absorption, strategic expansion by diverse sectors, and strong rental growth across major markets.
"A notable highlight was the net office absorption of nearly 50 million sq ft in top 7 cities, with NCR capturing 19 per cent of the total absorption," Jain said.
According to the report, the NCR's market witnessed a reduction in new office completions, declining by 22 per cent to 5.9 million sq ft in 2024 compared to 7.6 million sq ft in 2023.
The average office rental rate in NCR increased by 5 per cent year-on-year to Rs 86 per sq ft per month, reflecting a steady 10 per cent growth since 2019.
Among the key micro-markets, Noida emerged as the most dynamic micro market with a 6 per cent annual rental growth, although it maintained its position as the most affordable market with rents ranging from Rs 60-130 per sq ft per month.
The top seven cities are Delhi NCR, Bengaluru, Chennai, Hyderabad, Mumbai region, Pune, and Kolkata.
Anarock's outlook says the Indian office market is poised to experience positive growth in 2025, driven by multiple favourable factors shaping the commercial real estate landscape.
"The steady revival of global economies, particularly in the technology sector, is expected to drive renewed demand for office spaces across India's top 7 cities," Anarock said.
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