Delhi's golden run: Why office, retail and housing markets are thriving

After years of supply bottlenecks and uncertainty, Delhi’s real estate market is finally entering a new phase of sustained growth. Backed by the Delhi Master Plan 2041, policy support, and rising investor confidence, the capital city is shaping up to be one of India’s most attractive property markets across office, residential, and retail segments, as per a new report.

 

The report, “Delhi 2041: Shaping the Future of Real Estate” released by CBRE South Asia Pvt. Ltd. in partnership with the Confederation of Indian Industry (CII), paints a picture of a city on the cusp of transformation. The findings were unveiled at the 2nd CII Delhi Real Estate Summit 2025.

 

Office Market: Supply Returns After a Decade

 

Delhi’s office supply has been constrained since 2016 due to limited developable land. But the tide is turning. Between 2025 and 2027, the market is expected to add 5 million sq. ft. of new office space, breaking a decade-long lull.

 

Absorption in H1 2025: Around 400,000 sq. ft., driven mainly by research, consulting, and analytics firms (39%), flexible space operators (23%), and BFSI (18%).

 

Why this matters: The return of fresh supply comes at a time when global companies are expanding in India, ensuring Delhi remains a prime destination for corporate growth.

 

CBRE’s Chairman & CEO, Anshuman Magazine, summed it up: “New homebuyers and business owners are looking beyond just location and are now focused on amenities, sustainability and design. The city is becoming more affluent, with stronger regulations and investor confidence driving growth.”

 

Retail Real Estate: Lifestyle & Luxury Take the Lead

 

Delhi’s retail sector is riding on rising disposable incomes and global brand entries.

 

Absorption in H1 2025: About 230,000 sq. ft. of retail space leased, with 72% of activity concentrated on high streets.

 

Sector demand breakdown:

 

Fashion & apparel: 35%

 

Homeware & department stores: 20%

 

Food & beverage: 17%

 

Lifestyle-driven, experiential retail is gaining traction, and with more luxury brands entering the market, demand for premium spaces is expected to remain strong.

 

Residential: Luxury & Premium Housing Boom

 

Delhi-NCR’s housing market has seen a dramatic shift in the first half of 2025, dominated by high-end buyers.

 

New launches: 21,000 units, 35% higher year-on-year.

 

Sales: 21,000 units, matching new launches.

 

Breakdown of sales:

 

High-end homes (₹1.5–3 crore): 31%

 

Premium (₹3–6 crore): 26%

 

Luxury (₹6–50 crore): 18%

Together, these accounted for 75% of all sales.

 

Capital values, especially in South-East and South-West Delhi, have surged on the back of strong demand and limited supply. Upcoming infrastructure projects – like metro network extensions and new expressways – are set to unlock new growth corridors, making peripheral areas investment-friendly.

 

Policy & Planning: The Master Plan 2041 Advantage

 

At the heart of this optimism lies the Delhi Master Plan 2041. The policy framework:

 

Integrates rural areas into urban growth.

 

Prioritises affordable housing alongside premium supply.

 

Strengthens governance with DLRERA to ensure transparency and investor protection.

 

Supports sustainability and livability as core pillars of urban planning.

 

The Supreme Court’s recent emphasis on protecting homebuyers’ rights and RERA reforms add another layer of security, ensuring developers are held accountable.

 

What This Means for Investors & Homebuyers

 

Office Investors: With 5 million sq. ft. of supply entering the market, Delhi’s office real estate is poised for a comeback. Good news for REIT investors and those eyeing commercial property.

 

Retail Opportunities: High street retail remains hot, and entry of luxury brands boosts long-term value for retail property buyers.

 

Residential Buyers: The luxury segment is dominating, but capital appreciation in peripheral areas may offer better value for long-term investors.

 

Key points to note: 

• During January to June (H1 2025), Delhi recorded an office space absorption of approximately 400,000 sq. ft., driven by strong business confidence in core business districts. 
• The leading sectors driving this demand were research, consulting, and analytics (39% share), followed by flexible space operators (23%) and BFSI (18%), collectively contributing to around 80% of total leasing activity in the six-month period.
• In the first half of the calendar year, Delhi also recorded a healthy retail space absorption of about 230,000 sq. ft., with high streets accounting for 72% of the total leasing. 
• Fashion and apparel retailers demonstrated the highest demand with a 35% share, followed by homeware and department stores (20%) and food and beverage operators (17%).
• These trends have been further strengthened by rising disposable incomes and the entry of global luxury brands. With the growing availability of premium spaces and more brands looking to enter the capital city, the momentum of retail leasing is expected to remain strong in the coming quarters