Delhi-NCR’s office market is witnessing a structural shift, with flexible workspace operators replacing traditional occupiers as the biggest drivers of leasing activity, reflecting companies’ growing preference for agile office portfolios, even as overall demand for premium commercial real estate remains strong.Flexible office operators accounted for 45 per cent of the region’s total office leasing of around 3.6 million sq ft during the April-June quarter, marking the highest-ever quarterly flex space take-up in Delhi-NCR, according to CBRE’s latest India Office Figures report, cited by ANI.The rise in flex leasing comes as occupiers increasingly adopt the “core + flex” model, combining long-term headquarters with managed workspaces to accommodate expansion plans, project teams and evolving workplace requirements. Reflecting this shift, flex leasing in Delhi-NCR surged from 0.3 million sq ft in the second quarter of 2025 to 1.6 million sq ft this year.Leasing demand remained broad-based beyond flexible workspace operators. Research, consulting and analytics firms accounted for 17 per cent of office absorption during the quarter, while technology companies contributed another 12 per cent. The strong demand coincided with the addition of nearly 2 million sq ft of new office supply across the region.
Record leasing
Delhi-NCR’s performance mirrored the broader strength of India’s office market, where occupier demand has remained resilient despite global economic uncertainty. Nationwide, flexible workspace operators emerged as the largest leasing segment, accounting for 27 per cent of office absorption during the quarter. Along with technology and banking, financial services and insurance (BFSI) firms, they contributed nearly 63 per cent of total leasing activity.The robust demand helped India’s office market record its highest-ever quarterly absorption of around 24.6 million sq ft, an 18% increase from the previous quarter and 14% higher than a year earlier.“India’s office market continues to demonstrate its structural depth and resilience, delivering back-to-back record quarters even as the world navigates a volatile geopolitical and economic backdrop,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & North Africa, CBRE.“This strength is broad-based from GCCs deepening their presence to flexible space operators scaling rapidly across gateway and emerging cities alike. We expect this momentum, anchored by strong fundamentals and sustained occupier confidence, to continue through the rest of 2026,” he added.Global Capability Centres (GCCs) remained another key demand driver, accounting for a record 42 per cent of office leasing across India during the quarter. Delhi-NCR contributed an 8 per cent share of pan-India GCC leasing, placing it among the country’s top-performing office markets alongside Bengaluru and Pune.CBRE said occupiers are increasingly prioritising high-quality, sustainable and flexible office assets, with investment-grade supply remaining relatively tight across key business districts.“The demand across cities, asset classes and occupier types remains consistent. Occupiers are prioritising quality, sustainability and flexibility in equal measure – reflected in the scale-up of flex space adoption, the continued dominance of green-certified assets, and record activity in markets like Delhi-NCR and Pune,” said Ram Chandnani, Managing Director, Leasing Services, India, CBRE.“With investment-grade supply remaining tight relative to demand, we anticipate sustained rental appreciation across core micro-markets in the coming quarters,” he added.
