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We have a private domain which is not purchased from Salesforce. And we are planning to use a sub-domain for SFMC and we want to self host the DNS records.

so is it necessary to do the domain delegation for SAP configuration?

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For Salesforce to complete the SAP configuration with the custom sub-domain, you'll need to add entries in your zone files of that domain.

For the custom domain that you own, there are two ways you could achieve this:

Option 1. Delegate your sub-domain by adding Salesforce NS entries to your domain's zone file. Option 2. Request for zone file through the Salesforce support portal where the file contains the necessary entries that you may need to add under the domain zone configuration.

I have personally found "Option 1" to be the easiest and most straightforward since you won't need to manually add entries for each that SFMC uses for views, clicks, reply, bounce, etc.

References:

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