New Delhi, Jan 9: Knight Frank India, in its latest report India Real Estate: Office and Residential Market, July–December 2025 (H2 2025), notes that the NCR real estate market continued to demonstrate resilience in H2 2025. While office leasing plateaued marginally from the exceptional highs of the previous year, the region retained its position as India’s second-largest office market in terms of total stock, after Bengaluru. The residential sector, meanwhile, entered a phase of measured normalisation after three consecutive years of elevated activity, supported by end-user activity and sustained by premiumisation and firm price growth.

Office Market Update: July – December 2025

In 2025, NCR recorded its second-highest annual gross office leasing of 11.3 mn sq ft. Though it was an 11% YoY decline from the previous year’s peak, the performance firmly positions the region above long-term averages. In fact, NCR still accounted for 13% of India’s total office leasing during the year, reinforcing its status as one of the country’s most dynamic and liquid office markets.

Office leasing in H2 2025 also stood at 4.1 mn sq ft, reflecting a YoY decline of 42% owing to a strong base effect and limited availability of ready Grade A supply during parts of the year. Office completions in NCR reached 9.6 mn sq ft in 2025, a 71% YoY increase and the highest level since 2019. In H2 2025 alone, completions rose 108% YoY to 5.5 mn sq ft, led by market-leading developers across Gurugram and Noida. 

Demand continued to be driven by India-facing businesses, which accounted for 35% of annual transactions, followed closely by Global Capability Centres (GCCs) at 26%, underscoring NCR’s growing role as a hub for both Indian as well as global service delivery.

End-use split of transactions

Gurugram also remained the dominant office market within NCR, accounting for 61% of annual transactions, led by key micro-markets such as NH-48, Golf Course Road, Golf Course Extension Road and Udyog Vihar. Noida accounted for 27% of annual leasing, supported by improving infrastructure and the near commencement of operations at the Noida International Airport in Jewar.

Business district wise transactions split

Grade A office spaces dominated leasing activity, accounting for 84% of total transactions in 2025. Large-format deals exceeding 100,000 sq ft were concluded in marquee developments such as DLF Atrium Place, Embassy Oxygen Business Park and CapitaLand Tower 3, highlighting sustained demand for institutional-quality assets. Average transacted office rents also rose 10% YoY during the year, supported by tight availability in prime Grade A micro-markets.

Mudassir Zaidi, Executive Director – North, Knight Frank India, said, “The NCR office market continues to demonstrate strong depth and resilience, even as leasing volumes normalised from last year’s peak. Sustained demand from GCCs, India-facing corporates and flexible workspace operators, coupled with a clear flight-to-quality, is reinforcing NCR’s position as India’s second-largest office market. With a robust pipeline of high-quality supply and improving infrastructure connectivity, office market fundamentals remain firmly supportive of long-term growth.”

Residential Market Update: July – December 2025

Following three consecutive years of elevated residential activity, NCR’s housing market entered a phase of measured moderation in 2025. Residential sales declined 9% YoY to 52,452 units during the year, while H2 2025 sales stood at 25,657 units, down 10% YoY. New residential launches also moderated, declining 16% YoY to 50,769 units in 2025 and 15% YoY to 25,536 units in H2 2025, as developers adopted a more calibrated supply approach.

Despite the moderation in volumes, residential prices remained on a firm upward trajectory. Average home prices in NCR rose 19% YoY in 2025 to INR 6,028 per sq ft, driven by the growing share of premium and luxury housing across the region, particularly in Gurugram.

NCR Residential Market Summary

Gurugram continued to dominate NCR’s residential market, accounting for 53% of annual launches and 48% of sales, supported by strong traction in the INR 20–50 mn segment and sustained infrastructure-led development especially the upcoming metro network. Noida and Greater Noida together contributed 34% of launches and 32% of sales, benefiting from improving governance, affordability advantages and the soon-to-be-inaugurated Noida International Airport.

The premiumisation trend remained a defining feature of NCR’s residential market. Homes priced above INR 20 mn accounted for 57% of annual sales in 2025, with the INR 20–50 mn bracket emerging as the most active segment at 36% of annual sales. In contrast, affordable housing priced below INR 10 mn continued to see muted traction, reflecting changing developer strategies, buyer preferences and affordability dynamics as home ownership continues to remain lifestyle-defining and aspirational.

 NCR ticket size split comparison of sales

Source: Knight Frank Research

Mudassir Zaidi, Executive Director  North, Knight Frank India, said,

 “NCR’s residential market is undergoing a healthy transition from a phase of rapid expansion to one of measured, end-user-led growth. While volumes have moderated in H2 2025, sustained price appreciation and strong absorption in premium and luxury segments underscore the region’s long-term residential appeal. With improving infrastructure, stronger governance and rising preference for reputable developer-backed, high-quality developments, the market is well positioned for stable, sustainable growth going forward.”