Premiumisation is redefining office spaces in Delhi NCR

Companies in Delhi NCR are moving towards premium Grade A+ offices despite higher costs. Multinationals, Global Capability Centres, tech and SaaS companies drive this shift, prioritising modern amenities, sustainability and employee well-being as key talent strategies. Grade A+ properties feature green certifications, advanced technology, and premium amenities, usually newer or recently upgraded. However, Grade A buildings provide functional workspace at lower cost but lack sustainability features and modern facilities that attract today's talent.

Of Delhi NCR's 165.8 million sq. ft. Grade A office market, 69.9 million sq. ft. (42%) qualifies as Grade A+. Gurgaon leads with a 68% share of Grade A+ stock, while Noida and Aerocity in Delhi offer strong alternatives.

Between 2022 and 2025, premium Grade A+ buildings captured a larger market share in Delhi NCR, rising from 45% to 65% of annual leasing. IT companies, co-working operators, financial services, and consultancy firms accounted for 69% of premium demand, choosing certified buildings and well-maintained spaces with quality tenants. Global Capability Centres were significant occupiers, taking 34% of all Grade A+ space during this period.

Figure 1: Gross Leasing Trends (Share in %) – Delhi NCR Grade A+ vs Grade A

Source: JLL Research
Note: Grade A+ stock is a subset of Grade A universe

Despite the premiumisation trend, traditional Grade A buildings remain important, serving domestic enterprises, back-office operations, and cost-conscious tenants. The market accommodates both segments effectively, with Grade A properties offering functional workspace at competitive rates while Grade A+ buildings establish quality and sustainability standards.

Delhi NCR's vacancy trends from 2022 to Q1 2026 show diverging trajectories for office segments. Grade A+ vacancy dropped significantly from 14.2% to 4.9%, while broader Grade A vacancy declined from 28.1% to 19.1%. This performance gap highlights fundamental market restructuring as occupiers increasingly view sustainability credentials, modern amenities, and quality specifications as essential rather than optional workspace attributes.

Rental trends between 2022 and Q1 2026 highlight premium office demand in Delhi NCR. Grade A+ rents climbed from INR 99.6 to INR 123.5 per sq. ft., while Grade A rents rose from INR 79.4 to INR 93.8 per sq. ft. Companies now pay a 32% premium for top-tier buildings compared to 25% in 2022, highlighting that sustainability credentials, modern facilities and quality workspaces justify the higher investment.

Gurgaon and Noida have emerged as established technology hubs supported by high-quality office supply, strong talent availability and robust infrastructure. Prime locations fueling this demand include Aerocity in Delhi, Cybercity and Golf Course Road in Gurgaon and Sector-16B and Noida-Greater Noida Expressway in Noida.

With only 8.1 million sq. ft. of Grade A+ space planned for 2026-2028 versus 26.4 million sq. ft. total supply, premium offices will become more limited. Vacancy rates below 5% and rental premiums exceeding 30% will pressure older Grade A landlords to upgrade or risk obsolescence.

As ESG commitments intensify, green-certified buildings will shift from preference to requirement. Companies with net-zero targets will increasingly need Grade A+ spaces, further constraining supply. Sustainability credentials will become primary selection criteria, making uncertified buildings harder to lease.