NCR sees record 12.7 mn sq ft office leasing in 2024, avg deal size up 29%

Noida has witnessed a significant 48% year-on-year (YOY) increase in leasing activities in 2024, primarily driven by the growing demand from Global Capability Centers (GCCs) expanding their operations

India's National Capital Region (NCR) recorded its best year in 2024 with a record 12.7 million square feet of office leasing. According to real estate consultancy firm Knight Frank India, the average deal size for transacted office spaces in NCR increased by 29% YoY with average deal size of 40,025 sq ft in 2024 from 30,955 sq ft in 2023.

 

In comparison, the average deal size for commercial market across leading eight markets in the country has increased by 14% from 37,976 sq ft in 2023 to 43,387 sq ft in 2024.

 

Average transacted rent witnessed an increment of 3% reaching an average of Rs 88/sq ft/ month, said the report. 

Gurugram zone A witnessed the highest year on year growth of 9%, recorded at Rs 115-185/sq/ft/month. CBD Delhi emerged as the most expensive rental market of NCR, recorded at Rs 218- 360/sq/ft/month.   

Gurugram continued to be the preferred office market with key micro-markets such as DLF Cyber City, Golf Course Extension Road, and Udyog Vihar remaining highly sought-after by occupiers. 

 

Noida followed as a strong performer, with locations of Noida such as Sector 62 and -Greater Noida Expressway— emerging as preferred locations for occupiers seeking well-connected office spaces.

 

Noida records 48% rise in annual leasing volumes

Noida, which has been a strong contender to the Gurugram for quality office spaces, saw a rise of 48% on year in 2024 with over 3.92 mn sq ft of leasing in the year. 

 

While Gurugram remains the most preferred market with leasing of over 7.65 mn sq ft the region recorded a rise of 24% in the same period. Even while SBD – Delhi saw a moderation of 2% YoY in 2024, interestingly in this market, most of the leasing took place in the Aerocity location giving a further fillip to the area. 

 

"Occupiers are increasingly valuing accessibility and infrastructure in this business district, which has encouraged a rise in demand for traditional office spaces," said the report. 

 

Office space demand for flexible working space formats has grown by 2.4 times compared to last year. Given the requirement for quality spaces has increased and the segment regained momentum as occupiers adapt to evolving workplace models. The hybrid work model, which blends remote and inoffice operations, has led to a re-evaluation of office space requirements, resulting in a preference for flexibility.