Bengaluru Leads as GCC Office Leasing Surges 24% in FY25
Leasing of office space for Global Capability Centres (GCCs) increased by 24% in FY25, with Bengaluru accounting for 65% of the total office absorption, according to a report by real estate consultancy Vestian.
GccsOffice SpaceReal EstateBengaluruLeasingReal EstateJul 02, 2025
Bengaluru emerged as the top performer, with GCCs accounting for 65% of the city’s total office absorption, the highest among the top seven cities. This marks a significant jump from 55% in the previous fiscal, reaffirming Bengaluru’s position as the leading hub for GCCs in India.
The report noted that the IT-ITeS sector continued to dominate GCC leasing, accounting for a 46% share in FY 2025, although this was down from 53% a year earlier. Meanwhile, the BFSI (Banking, Financial Services, and Insurance) sector saw its share surge to 22% from 14% in the previous year.
Of the total 31.8 million sq ft leased by GCCs last fiscal, Fortune 500 companies accounted for 13.5 million sq ft, an increase of 25% from 10.9 million sq ft in FY 2024. Notably, Fortune 500 firms contributed to 47% of all GCC leasing in FY 2025, further underscoring the growing appeal of India, particularly Bengaluru, as a global GCC destination.
In Pune, the IT-ITeS sector accounted for 61% of the total number of GCCs in the city, the highest among other sectors. It is followed by BFSI at 16%, engineering and manufacturing at 7%, automobile at 5%, and healthcare and life sciences at 3%.
IT-ITeS sector dominated GCC absorption with 54% share in FY 2025 in Chennai but the share declined from 61% a year earlier. Despite accounting for only 8% of the total number of GCCs in the city, the share of healthcare and life sciences in absorption increased from 4% to 14% during the same period.
In Mumbai, the city’s overall absorption increased by 52% in FY 2025 over the previous year. The uptick was primarily driven by the growth in the GCC landscape as the share of GCCs in the city’s total absorption increased from 15% to 26% during the same period.
The share of Fortune 500 companies in the overall area absorbed by GCCs rose to 50% in FY 2025 in the NCR from 40% a year ago. These companies leased larger office spaces in the region, which can be substantiated by the fact that the area transacted under large-sized deals increased drastically by 142% in FY 2025.
In Hyderabad, GCCs accounted for 46% of the city’s overall absorption in FY 2025, the second-highest contribution among the top seven cities. However, the area absorbed under the large-sized deals decreased by 5% in FY 2025 over the previous year, indicating a cautious approach by GCCs in the city while leasing larger office spaces.
GCCs contribute significantly to the office market in India, accounting for over 40% of the absorption recorded in the past two years. This share is expected to grow even further fueled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, healthcare and lifesciences, engineering and manufacturing, and consulting services, said Shrinivas Rao, FRICS, CEO, Vestian.
The IT-ITeS sector continued to dominate GCC absorption with 46% share in FY 2025; however, the share contracted from 53% over the previous year. On the other hand, the share of the BFSI sector surged to 22% in FY 2025 from 14% a year earlier. Similarly, the share of healthcare and life sciences sectors also witnessed an increase from 5% to 8% during the same period, showcasing the growing diversification in the GCC landscape. While the share of engineering and manufacturing dropped from 9% to 4%, the share of consulting services remained largely stable at 6% in FY 2025.
Karan Chopra, chairman and co-CEO, Table Space said, 'The demand from GCCs for Grade A office spaces in India remains strong. Within this segment, we are seeing a distinct preference for managed workspace solutions. This trend is clearly reflected in the growing adoption of Table Space’s managed office offerings.'
Frequently Asked Questions
Which city leads in GCC office absorption in India?
Bengaluru leads in GCC office absorption, accounting for 65% of the total office absorption among the top seven cities.
What sectors dominate GCC leasing in FY25?
The IT-ITeS sector dominates GCC leasing with a 46% share, followed by the BFSI sector with 22%.
How much office space did Fortune 500 companies lease in FY25?
Fortune 500 companies leased 13.5 million sq ft of office space in FY25, contributing to 47% of all GCC leasing.
What is the trend in healthcare and life sciences sector in GCC leasing?
The healthcare and life sciences sectors saw an increase in their share from 5% to 8% in FY25, indicating growing diversification in the GCC landscape.
What is the expected future growth in GCC office absorption in India?
The share of GCCs in the office market in India is expected to grow further, driven by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, healthcare and lifesciences, engineering and manufacturing, and consulting services.
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