July 4, 2025
GCC absorption grew 24% year-on-year, reaching 31.8 million square feet, with large transactions rising 44% to 22.8 msf
Fortune 500 companies drove the momentum, leasing 13.5 msf, 43% of the total leased by GCCs, marking a 25% increase from FY24
The IT/ITeS sector remained the largest contributor to GCC leasing at 46%, followed by rising shares from BFSI (22%) and healthcare/life sciences (8%)
Bengaluru led all cities, with GCCs accounting for 65% of its office absorption, followed by Hyderabad (46%) and Chennai (42.1%)
Global capability centres (GCCs) remained the dominant force in India’s office leasing market in FY25, accounting for 42% of total office space absorption across the country, according to data from real estate consultancy Vestian.
The total GCC leasing volume rose to 31.8 million square feet, a 24% increase over the previous year. This growth was especially notable in large transactions, deals above 100,000 square feet, which surged 44%, from 15.8 msf in FY24 to 22.8 msf in FY25.
Fortune 500 corporations continued to lead this trend, leasing 13.5 million square feet during the year. This accounted for 43% of the space taken up by all GCCs and marked a 25% rise from the year before, further reinforcing India’s global appeal as a hub for strategic operations.
The expansion, analysts noted, was driven by companies’ efforts to optimise costs while tapping into India’s skilled workforce, improving infrastructure, business-friendly policies, and scalable ecosystems.
Experts said the contribution of GCCs to the office leasing segment is set to increase further as large global firms across the IT-ITeS, BFSI, healthcare and life sciences, engineering and manufacturing, and consulting sectors expand their presence. He said India offers a “compelling value proposition” through its operational advantages and deep talent base.
IT/ITeS continued to dominate GCC demand, with a 46% share in FY25, although this marked a decline from 53% the previous year. The BFSI sector, on the other hand, saw its share jump to 22% from 14%, while healthcare and life sciences grew from 5% to 8%, signalling increasing diversification in the GCC mix.
Among cities, Bengaluru topped the chart with GCCs accounting for 65% (12.43 msf) of its overall office leasing—up from 55% in FY24. Nearly half of this was leased by Fortune 500 firms.
Hyderabad followed with GCCs making up 46% of total office absorption, while Chennai’s share stood at 42.1%, driven primarily by the IT-ITeS sector, which claimed 54% of the city’s GCC leasing.
Mumbai and Delhi-NCR also posted healthy growth. Mumbai saw its GCC share increase from 15% to 26% in a year, while Delhi-NCR reached 28.3%. Notably, Fortune 500 firms accounted for 50% of GCC-leased space in NCR, up from 40% in FY24.
Source: Money Control