Delhi Real Estate Set for Major Supply Boost by 2027

Delhi’s office real estate sector is set for a strong rebound after nearly a decade of limited supply, with around 5 million sq. ft. of new space expected between 2025 and 2027, according to a joint report by CBRE South Asia and CII titled “Delhi 2041: Shaping the Future of Real Estate.”

The report highlights the city’s evolving property market, driven by robust economic fundamentals, progressive policies, and the Delhi Master Plan 2041, which promotes integrated urban development and affordable housing.

Key Highlights

• 5M sq. ft. of new office space expected in Delhi by 2027
• Retail absorption rises with luxury brands and high-street demand
• Residential launches up 35 percent YoY, led by premium and luxury homes

Office space absorption in H1 2025 was around 400,000 sq. ft., led by research, consulting, and analytics firms (39 percent), flexible space operators (23 percent), and BFSI (18 percent), collectively making up nearly 80 percent of leasing activity. This reflects rising demand for adaptable, modern workspaces as hybrid work and digital transformation reshape corporate needs.

Retail real estate also saw strong momentum, with 230,000 sq. ft. absorbed in H1 2025, 72 percent on high streets. Fashion and apparel dominated demand (35 percent), followed by homeware (20 percent) and F&B (17 percent). The influx of global luxury brands and rising disposable incomes are expected to sustain retail growth.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, highlighted the market's resilience. "Delhi’s strong economic potential has helped its property market not just to bounce back, but also start on a path of steady, high-quality growth," Magazine said. He noted a shift in buyer preferences towards amenities, sustainability, and design, reflecting rising affluence and a maturing market bolstered by clear regulations.

Also Read:  India's Office Leasing Surges 40% in H1 2025

Residential launches hit 21,000 units in H1 2025, a 35 percent YoY rise, with luxury, premium, and high-end segments contributing 75 percent of sales. Infrastructure projects like metro expansions and expressways are unlocking peripheral areas, boosting connectivity and investment prospects. Experts believe Delhi is maturing into a globally competitive real estate hub, with policy support and technology set to reshape its skyline by 2028.