Delhi NCR office leasing rises 16% to 3.55 million sq ft in Q2
Firm, diversified occupier demand may support premium Grade A rents in prime locations, although the 44.2 million sq ft pipeline could expand tenant choice through 2030.
Delhi NCR gross office leasing rose 16% quarter-on-quarter to 3.55 million sq ft in Q2 2026, while net absorption increased 39% to 2.04 million sq ft.
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Rents also grew by 7.7% year-on-year.
Delhi NCR's office market strengthened in the second quarter of 2026, with gross leasing rising 16% quarter-on-quarter to 3.55 million sq ft, according to JLL. Net absorption increased 39% from the previous quarter to 2.04 million sq ft, pointing to firm occupier demand across the region.
Flexible workspace operators led quarterly leasing with a 41% share, followed by consulting firms at 18% and IT/ITeS companies at 13%. Together, the three segments accounted for 72% of Q2 leasing, JLL said.
Gurgaon accounted for 56% of net absorption, while Noida contributed 30%. NH-8, Noida Expressway, Golf Course Extension and SBD Delhi together accounted for 71% of overall net absorption.
Delhi NCR added 1.35 million sq ft of new office space during the quarter. Gurgaon dominated completions with an 88% share, while Noida accounted for the remaining 12%. Total Grade A office stock in the region reached 167.2 million sq ft, with key Q2 completions concentrated along NH-8 and Golf Course Extension.
JLL expects the supply pipeline to remain substantial, with 44.2 million sq ft of new Grade A office space scheduled for completion between the second half of 2026 and 2030. The pipeline is being driven by major developers across Gurgaon, Noida and Aerocity in Delhi.
Office rents also continued to strengthen. Delhi NCR's Grade A rents reached INR 94.6 per sq ft in Q2, up 0.9% quarter-on-quarter and 7.7% year-on-year. JLL attributed the rental increase to healthy demand for a limited supply of Grade A assets in prime locations, allowing developers to command a premium.
The consultancy said quality developments across Gurgaon, Noida and SBD Delhi continued to attract tenants, supporting expectations of further rental growth. Demand is also becoming increasingly diversified, with co-working operators, IT/ITeS companies, consulting firms, manufacturers and financial institutions contributing to absorption.
JLL expects leasing momentum to continue through the second half of 2026, forecasting 3.8 million to 4.3 million sq ft of leasing in premium office assets in prime locations. The consultancy said demand is likely to be supported by established developers and institutional investors, while also creating scope for further rental growth.
Investment in office development is expected to remain robust, JLL said, citing strong leasing demand, improving quality standards, a solid premium-project pipeline and better transport connectivity as key drivers of the market's continued strength.