Gurugram Leads NCR Commercial Growth Amid Market Consolidation

Published By Hindustan Times

In 2025, office leasing reached unprecedented levels, driven by strong demand from GCCs and IT companies, while retail spaces saw lower vacancies due to rising interest in Grade A offices and organised retail.

Gurugram is emerging as the driving force behind the Delhi NCR commercial market consolidation. As the region's commercial real estate market shifts from recovery to a stable phase, Gurugram stands out with strong performance in both office and retail segments. Low vacancy rates, robust leasing activity, and high occupier confidence have made the city NCR's most resilient commercial hub.

Office Leasing Trends in NCR 2025 Show Robust Growth

According to Knight Frank, Delhi NCR recorded its highest-ever office leasing trends in 2025, with approximately 7.2 million square feet leased in the first half of the year. Gurugram alone accounted for nearly 65% of this absorption, marking a 900-basis-point increase compared to the previous year.

This growth was primarily driven by global capability centres (GCCs), IT services firms, and domestic corporates seeking Grade A office space leasing in Gurugram. Companies are increasingly choosing premium offices in prime locations to improve productivity, operational efficiency, and employee satisfaction.

Grade A Office Space Leasing in Gurugram Fuels Corporate Expansion

Grade A offices are designed to meet modern corporate needs. These spaces feature large floor plates, advanced HVAC systems, high-speed elevators, 24/7 power backup, reliable security, ample parking, and high-speed digital connectivity.

Such premium offices in Gurugram are highly desirable for multinational firms, domestic corporates, and fast-growing IT-BPM and GCC companies. The strong preference for high-quality spaces has established Gurugram as the top destination for businesses planning expansion and long-term growth.

Retail Leasing in Gurugram Shows Strong Momentum

The retail sector in Gurugram mirrors the strong office market performance. CBRE reports show that organised retail leasing in NCR rose nearly 25% in the first half of 2025. Fashion and apparel brands accounted for around 35% of leasing activity, while homeware and departmental stores contributed about 30%.

Vacancy rates in Grade A retail spaces in Gurugram have fallen below 3%, creating a highly competitive leasing environment. In the third quarter of 2025, retail leasing reached 0.5 million sq ft - a 70% increase quarter-on-quarter and an 88% year-on-year rise. Food and beverage operators contributed nearly 40% of this leasing, with main streets outperforming malls and capturing 58% of demand. This reflects a shift toward experience-driven, high-visibility retail spaces.

Challenges and Opportunities Ahead

While the market shows strong growth, experts note some potential challenges:

• Rising land and construction costs
• Delays in approvals
• Traffic congestion and pressure on civic infrastructure
• Limited supply of Grade A office and retail spaces in prime locations, pushing rentals higher
• Global economic uncertainties and geopolitical risks are affecting expansion timelines

Sachin Gawri, Founder and CEO of Rise Infraventures, said,

Gurugram's rise from recovery to market leadership in 2025 shows the maturity of its commercial ecosystem. Sustaining growth will require better infrastructure, faster approvals, and efficient supply management. While demand is strong, execution and last-mile connectivity will be key in 2026.

Ajay Malik, Chief Strategy Officer at Rise Infraventures, added,

India's commercial real estate sector has shifted from reactive measures to strategic, long-term planning. As 2026 begins, the market looks stable, predictable, and ready for long-term investment.

Conclusion: Gurugram Remains NCR's Prime Market

Gurugram's strong office and retail leasing demand highlights its growing importance in the Delhi NCR commercial ecosystem. Premium Grade A office spaces, increasing retail activity, and strong occupier confidence position Gurugram as the leading hub for commercial real estate in the region.

Companies and investors reviewing office leasing trends in NCR 2025 will find Gurugram a resilient, opportunity-rich, and future-ready market. With robust infrastructure, strategic location, and high-quality commercial offerings, Gurugram is set to remain the preferred destination for both office and retail leasing in the coming years.

1. Why is Gurugram leading the NCR commercial real estate growth?

Gurugram has strong office and retail leasing demand, premium Grade A office spaces, low vacancy rates, and excellent infrastructure, making it the most resilient commercial hub in NCR.

2. What were the key office leasing trends in NCR 2025?

Delhi NCR recorded around 7.2 million sq ft of office leasing in H1 2025, with Gurugram accounting for 65% of absorption, driven by GCCs, IT firms, and domestic corporates seeking premium spaces.

3. What makes Grade A office space leasing in Gurugram popular?

Grade A offices offer modern amenities, large floor plates, advanced HVAC, high-speed elevators, 24/7 power backup, robust security, and strong digital connectivity, meeting corporate needs efficiently.

4. How is retail leasing performing in Gurugram?

Organised retail leasing in Gurugram rose significantly in 2025, with vacancy rates dropping below 3%. Food, fashion, and homeware sectors are driving demand for high-visibility, experience-led retail spaces.

5. What challenges could affect Gurugram's commercial market in 2026?

Rising construction costs, limited supply of Grade A spaces, approval delays, traffic congestion, and global economic uncertainties may impact rental affordability and expansion plans, even as demand remains strong.