Delhi-NCR tops home price growth in 2025, Mumbai remains India’s largest housing market: Report
New Delhi: Delhi-National Capital Region (NCR) led the country in residential price growth in 2025, with average home prices rising sharply, while Mumbai continued to hold its position as India’s largest housing market, according to a report by Knight Frank India released on Friday.
The report said average home prices in Delhi-NCR increased 19 per cent year-on-year in 2025, driven mainly by rising demand for premium homes, especially in Gurugram. Despite the price rise, residential sales in the region saw a moderate slowdown, declining 9 per cent to 52,452 units, signalling a phase of market stabilisation.
On the commercial real estate front, Delhi-NCR recorded its second-highest annual gross office leasing at 11.3 million square feet in 2025. Although leasing volumes were down 11 per cent from the previous year’s peak, the region still accounted for 13 per cent of total office leasing across India. Limited availability of Grade A office space led to a sharp 42 per cent drop in leasing during the second half of the year, which stood at 4.1 million square feet. However, office completions rose to 9.6 million square feet, the highest level since 2019.
Gurugram emerged as the main growth driver within NCR, contributing 61 per cent of total office transactions. Noida also gained momentum due to improved infrastructure and the expected start of operations at the upcoming Jewar airport.
Mumbai showed steady performance, recording 9.8 million square feet of office leasing in 2025, marking its second-strongest year in over a decade, despite a 5 per cent year-on-year decline. Leasing activity in the second half stood at 4.3 million square feet, supported by large deals in suburban business hubs. Global Capability Centres increased their share of demand to 27 per cent, while India-focused companies accounted for 40 per cent of total office space uptake.
In Delhi-NCR, India-facing businesses remained the key demand drivers, contributing 35 per cent of office leasing, followed by Global Capability Centres at 26 per cent. Demand was largely concentrated in Grade A office assets, which made up 84 per cent of total transactions in the region.
Commenting on the outlook, Mudassir Zaidi, executive director – North, Knight Frank India, said strong infrastructure connectivity and a healthy pipeline of quality office supply continue to support long-term growth. Reflecting tight supply in prime locations, average office rents in Delhi-NCR rose 10 per cent year-on-year during 2025.
(with inputs from agencies)
