Delhi-NCR Home Prices Surge 19% in 2025; Mumbai Leads Office Leasing

Knight Frank India said in the report that Mumbai continued to show resilience, remaining largest player in housing market and posting second‑strongest year for office leasing in over a decade.

On the residential front, Delhi-NCR entered a phase of measured normalisation, the report said, adding that annual sales eased 9 per cent YoY to 52,452 units, even as average home prices climbed 19 per cent YoY to Rs 6,028 per sq ft, driven by premiumisation in Gurugram.

NCR recorded its second‑highest annual gross office leasing at 11.3 million sq ft in 2025, even as volumes eased 11 per cent YoY from the prior year's peak. It accounted for 13 per cent of India's total leasing. H2 2025 leasing in NCR stood at 4.1 million sq ft, down 42 per cent YoY on a strong base and limited Grade A availability. The completions rose to 9.6 million sq ft for the year -- the highest since 2019.

Gurugram led NCR activity, contributing 61 per cent of annual transactions, with Noida gaining from improving infrastructure and the near start of operations at Jewar airport.

Mumbai posted its second‑strongest year for office leasing in over a decade, with 9.8 million sq ft transacted in 2025 (-5 per cent YoY). H2 2025 volumes were 4.3 million sq ft, supported by large‑format deals in scalable suburban locations. Global Capability Centres' share rose to 27 per cent in second half of the year up 9 per cent YoY, while India‑facing occupiers accounted for 40 per cent of demand.

In Delhi, demand continued to be driven by India-facing businesses, which accounted for 35 per cent of annual transactions, followed closely by Global Capability Centres (GCCs) at 26 per cent.

Grade A assets dominated demand across both regions, making up 84 per cent of transactions in Delhi.

"With a robust pipeline of high-quality supply and improving infrastructure connectivity, office market fundamentals remain firmly supportive of long-term growth," said Mudassir Zaidi, Executive Director - North, Knight Frank India.

In Delhi-NCR, the average transacted office rents also rose 10 per cent YoY during the year, supported by tight availability in prime Grade A micro-markets.

- IANS