GCCs Lead India’s Office Leasing with 42 Per Cent Share in FY 2025
Global Capability Centres (GCCs) emerged as the primary driver of India’s office space demand in FY 2025, accounting for 42 per cent of the pan-India absorption, up marginally from 41 per cent in FY 2024, according to Vestian’s latest report. In absolute terms, GCC leasing grew 24 per cent year-on-year to reach 31.8 million sq ft.
While the total leased area expanded, the number of GCC transactions declined by 4 per cent to 305, highlighting a growing preference for larger spaces and long-term expansion. Notably, large transactions—leases above 1 lakh sq ft—rose by 44 per cent, from 15.8 million sq ft in FY 2024 to 22.8 million sq ft in FY 2025.
Fortune 500 firms contributed significantly, leasing 13.5 million sq ft, or 43 per cent of total GCC absorption—a 25 per cent increase from the previous year—affirming India’s stature as a strategic destination for global firms.
Shrinivas Rao, FRICS, CEO, Vestian, said, “GCCs contribute significantly to the office market in India, accounting for over 40 per cent of the absorption recorded in the past two years. This share is expected to grow even further fuelled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services. India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem.”
Sectoral insights:
- IT-ITeS maintained dominance with a 46 per cent share in GCC absorption, though down from 53 per cent in FY 2024.
- BFSI increased its share to 22 per cent from 14 per cent.
- Healthcare & Lifesciences also rose from 5 per cent to 8 per cent.
- Engineering & Manufacturing dropped to 4 per cent from 9 per cent.
- Consulting Services held steady at 6 per cent.
- Others (including Automotive, Data Centres, Consumer Goods, Telecom, and Logistics) accounted for 14 per cent, up from 12 per cent.
City-wise highlights:
- Bengaluru led the market with 65 per cent of its overall office leasing coming from GCCs, rising from 55 per cent last year. Fortune 500 companies accounted for 47 per cent of this.
- Hyderabad followed with a 46 per cent share in citywide leasing, although large deals saw a 5 per cent decline.
- Chennai saw GCC leasing by IT-ITeS drop from 61 per cent to 54 per cent, while Healthcare & Lifesciences surged to 14 per cent from 4 per cent.
- Mumbai witnessed a 52 per cent increase in total absorption, with GCCs’ share growing from 15 per cent to 26 per cent.
- NCR saw Fortune 500 leasing jump to 50 per cent from 40 per cent, with large transactions surging 142 per cent.
- Pune saw a 46.4 per cent rise in absorption; IT-ITeS held the lion’s share at 61 per cent, followed by BFSI at 16 per cent.
- Kolkata registered a 36 per cent decline in GCC leasing share.
City-wise GCC Office Absorption (FY 2025 vs FY 2024):
- Bengaluru: 12.43 mn sq ft (up 49.1 per cent)
- Hyderabad: 6.26 mn sq ft (down 2.9 per cent)
- Chennai: 3.15 mn sq ft (down 29.2 per cent)
- Mumbai: 3.68 mn sq ft (up 170.3 per cent)
- NCR: 2.78 mn sq ft (up 8.1 per cent)
- Pune: 3.34 mn sq ft (up 46.4 per cent)
- Kolkata: 0.11 mn sq ft (down 36 per cent)
Vestian’s findings underscore the evolving preference of GCCs for larger, high-quality spaces and their growing role in India’s commercial real estate growth.