Asia Pacific Office Outlook 2024

DELHI NCR

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 Annual average supply of around 5.2 msf is expected in Delhi NCR during 2023 and 2024, primarily in Golf Course Extn., NH-8 and Noida Expressway submarkets.  Over 25 msf of new supply is expected in NCR market post-2024 through 2027

 Owing to healthy average net absorption levels of approx. 5–7 msf between 2022 and 2023, vacancy decreased marginally. It is likely to decrease further in 2024.

 Rentals are expected to witness marginal growth (0.5%) in 2024.  Post 2024, rental growth is likely to remain range bound, but at stronger levels compared to 2024. Fresh demand for space is likely to help offset new supply additions.  Rents are likely to appreciate marginally from INR 950 sf/yr as of end 2022 to INR 958 sf/yr by end-2024, and subsequently to INR 976 sf/yr by 2026.

 The Delhi-NCR office market is likely to benefit from growth in IT-BPM, GCCs and flexible space segments, all of which have demonstrated high growth in recent years and are anticipated to grow further.