The fire was allegedly sparked by a short circuit in an air-conditioning unit on the fourth floor and it spread rapidly.
Thick smoke was seen coming out of the building, which is next to Khan Market, a popular shopping complex in central Delhi.
Residents said they helped in clearing the narrow road for the fire trucks to reach the building. Another resident who was identified only by his first name, Mahesh, said they alerted people to move their vehicles away from the narrow road immediately.
"I saw a cloud of smoke and heard the fire engines, but it being a narrow lane and a parking area we had to tell people to move fast," he said.
The western side of the building on the fourth and fifth floors look completely burnt.