According to Knight Frank India, a leading international property consultancy, 61% of office transactions in the National Capital Region (NCR) took place in spaces above 50,000 sq. ft. in H1 2024, reflecting a 32% year-on-year (YoY) growth.

These larger spaces accounted for 3.44 million sq. ft. of transactions, up from 2.61 million sq. ft. in H1 2023. This surge in demand was driven by India-focused businesses and flexible workspaces, fuelled by increasing confidence in the growing economy.

Small office spaces, measuring under 50,000 sq ft accounted for 39% of total transactions, amounting to 2.22 million sq ft in the region.

NCR’s office market saw strong performance in H1 2024, with 5.7 mn sq ft of gross leasing, reflecting 12% YoY growth from H1 2023. New office completions totalled 2.9 mn sq ft. Gurugram led with 56% of the region’s leasing, with high demand in areas like DLF Cyber City, Golf Course Extension Road, NH-48, and Udyog Vihar.

In Noida, locations along the Noida-Greater Noida Expressway, such as Sectors 135, 142, and Sector 18, also attracted significant occupier interest.

The share of office spaces leased to India-facing businesses grew from 49% in H1 2023 to 55% in H1 2024, reflecting increased focus on domestic businesses amid a strengthening economy.

Flex office spaces made up 26% of leasing, followed by Global Capability Centres (GCC) at 11%, while third-party IT services providers accounted for just 9%.

Anand Patil, National Director, Knight Frank India, said, “The National Capital Region (NCR) has emerged as the leader in office space transactions among the top eight markets in India. This growth in large office spaces above the 50,000 category was driven by India-facing businesses and flex spaces fuelled by the increasing confidence in the growing economy. The future of the office market in NCR looks optimistic, especially with the growing interest from India facing businesses.”