GCCs Drive 24% Surge in Office Space Leasing Across Major Indian Cities
The leasing of office spaces for Global Capability Centres (GCCs) has seen a significant 24% year-over-year increase, reaching 31.8 million square feet in FY25. Key drivers include cost optimization, a skilled talent pool, and supportive government policies.
GccsOffice SpaceReal EstateIndian CitiesEconomic GrowthReal Estate NewsJul 03, 2025
Chief Executive Officer of Vestian, Mr. Shrinivas Rao, noted that GCCs continue to be the primary growth driver in India’s office market, with contributions expected to increase as conglomerates across sectors like Information Technology (IT) and Information Technology Enabled Services (ITeS), Banking, Financial Services, and Insurance (BFSI), healthcare and life sciences, engineering and manufacturing, and consulting services expand their footprint.
Among cities, Bengaluru led GCC office leasing with 12.43 million sq. ft in FY25, up from 8.34 million sq. ft a year earlier. Mumbai also witnessed significant growth in FY25, with GCC office space absorption rising to 3.68 million sq. ft from 1.36 million sq. ft in FY24. Key players in the Indian office market include real estate majors such as DLF Ltd, Embassy Group, Prestige Group, RMZ Group, and Tata Realty & Infrastructure Ltd, alongside office asset-backed Real Estate Investment Trust (REITs) including Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Embassy Office Parks REIT. He emphasised India’s compelling value proposition through its operational scalability, robust ecosystem, and skilled workforce.
The growth in GCC office space leasing reflects the increasing confidence of global companies in India’s business environment. The country’s ability to offer a combination of cost efficiency, skilled labour, and modern infrastructure makes it an attractive destination for setting up GCCs. This trend is expected to continue as more companies seek to leverage India’s advantages to enhance their global operations and competitive edge.
In addition to the primary cities, other major cities such as Hyderabad, Pune, Chennai, and NCR (National Capital Region) also contributed to the overall growth in GCC office space leasing. These cities are rapidly developing their infrastructure and offering a range of incentives to attract more GCCs, further solidifying India’s position as a global hub for business and innovation.
The real estate sector in India is poised for further growth, driven by the increasing demand for office spaces from GCCs. Real estate developers and REITs are capitalizing on this trend by investing in high-quality office spaces and modern amenities to meet the growing needs of GCCs. This not only benefits the real estate sector but also contributes to the overall economic development of the country.
In conclusion, the 24% surge in GCC office space leasing in FY25 highlights the strong and resilient growth of India’s office market. As more global companies continue to set up or expand their GCCs in India, the demand for office spaces is expected to remain robust, supported by a favorable business environment and a skilled workforce.
Frequently Asked Questions
What are Global Capability Centres (GCCs)?
Global Capability Centres (GCCs) are international hubs set up by companies to handle various functions such as IT, R&D, finance, and customer support. They leverage the cost advantages and skilled talent pool of the host country.
Which cities led the GCC office space leasing in FY25?
Bengaluru led the GCC office space leasing with 12.43 million sq. ft, followed by Mumbai with 3.68 million sq. ft.
What factors are driving the growth in GCC office space leasing?
The growth is driven by cost optimization, a skilled talent pool, rapid infrastructure development, favourable government policies, and a supportive business environment.
Who are the key players in the Indian office market?
Key players include real estate majors such as DLF Ltd, Embassy Group, Prestige Group, RMZ Group, and Tata Realty & Infrastructure Ltd, alongside REITs like Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Embassy Office Parks REIT.
What is the future outlook for GCC office space leasing in India?
The future outlook is positive, with expectations of continued growth as more global companies set up or expand their GCCs in India, driven by the country's compelling value proposition and operational scalability.
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