New Delhi, March 13 The Delhi-National Capital Region (NCR) office market recorded a 61 per cent year-on-year increase in net absorption at 9.5 million square feet in 2024, the highest among the top seven cities, a report showed on Thursday.
Overall, the net office absorption in top seven cities reached nearly 50 million sq ft, marking a substantial 29 per cent year-on-year increase from 38.64 million sq ft in 2023.
This was primarily driven by robust demand from Global Capability Centres (GCCs) and the technology sector, said a report by Anarock Group.
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% to the overall transactions, the report said.
“The year 2024 emerged as a transformative year for the office real estate market, characterised by robust absorption, strategic expansion by diverse sectors, and strong rental growth across major markets,” said Peush Jain, MD-Commercial Leasing and Advisory, Anarock Group.
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.
This controlled new supply addition, coupled with robust absorption, led to a 2.6 per cent reduction in average vacancy rates, bringing them down to 22.6 per cent.
The moderation in vacancy rates suggests improving market fundamentals, despite NCR maintaining relatively higher vacancy levels compared to other major office markets in India, the report mentioned.
The average office rental rates in NCR increased by 5% per cent year-on-year to Rs 86 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, said the report.
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