GCC Office Leasing Surges 24% in FY25, Hits 32 Million Sq Ft

GCC Office Leasing Surges 24% in FY25, Hits 32 Million Sq Ft

Global Capability Centres Drive India’s Office Market to New Heights

India’s office real estate market has witnessed a remarkable surge in demand from Global Capability Centres (GCCs), with leasing activity jumping 24% year-on-year to 31.8 million square feet in FY25, according to Vestian data. This surge underscores the pivotal role GCCs now play, accounting for 42% of all office space absorption across the top seven cities—a marginal increase from 41% last year.

Bengaluru Leads, Fortune 500 Companies Dominate

Bengaluru emerged as the undisputed leader, with GCCs accounting for 65% of the city’s total office absorption—up from 55% the previous year. The city alone saw 12.43 million sq ft of GCC leasing, while Mumbai’s GCC absorption more than doubled to 3.68 million sq ft. Fortune 500 companies were at the forefront, leasing 13.5 million sq ft—43% of all GCC-leased space—marking a 25% jump over last year.

Sectoral and Regional Diversification

• IT-ITeS: 46% share in GCC leasing
• BFSI: 22% (up from 14%)
• Healthcare/lifesciences: 8% (up from 5%)
• Hyderabad and Chennai remain strong GCC hubs
• Tier 2 cities like Coimbatore and Ahmedabad gain traction

Key Growth Drivers

Vestian attributes this growth to India’s skilled talent pool, cost optimization, rapid infrastructure development, favorable government policies, and a supportive business environment. Shrinivas Rao, CEO of Vestian, expects GCCs’ share in office leasing to rise further as conglomerates from IT, BFSI, healthcare, engineering, and consulting expand their Indian footprints.

Major Players and Outlook

Leading developers and REITs, including DLF Ltd, Embassy Group, Prestige Group, RMZ Group, Tata Realty & Infrastructure Ltd, Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Embassy Office Parks REIT, continue to shape the market landscape. With India’s value proposition—skilled talent, operational scalability, and a robust ecosystem—remaining strong, GCC-driven office demand is set for continued growth.