GCCs Lead Office Market with 42% Absorption in FY25, Fortune 500 Companies Dominate

Global Capability Centres (GCCs) have been the primary growth drivers of India's office market for the past couple of years, and this trend continued in 2024-25. These centres accounted for 42% of pan-India absorption in the financial year, according to data from Vestian, a prominent real estate consultancy firm.

In terms of value, GCC absorption increased by 24% during FY25, reaching 31.8 million square feet (msf). The area leased under large transactions (above 100,000 sq. ft.) saw a significant rise of 44%, from 15.8 msf in FY24 to 22.8 msf in FY25.

GCCs of Fortune 500 corporations led the charge, leasing 13.5 msf of office space, which accounted for 43% of the total area leased by such entities in the fiscal. This represents a 25% increase over the previous year, further solidifying India’s position as the preferred destination for GCCs.

Market observers attribute this growth to cost optimization strategies, a skilled talent pool, rapid infrastructure development, favorable government policies, and a supportive business environment. Shrinivas Rao, CEO of Vestian, noted that GCCs' contribution to office leasing is expected to grow even further, driven by the expansion of large conglomerates from industries such as IT-ITeS, banking, financial services and insurance (BFSI), healthcare and life sciences, engineering, and manufacturing, and consulting services.

“India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem,” Rao said. He added that the IT/ITeS sector continued to dominate GCC absorption with a 46% share in FY25, although this was a drop from the 53% recorded the previous year.

On the other hand, the share of the BFSI sector surged to 22% in FY25 from 14% a year earlier. Similarly, the share of the healthcare and life sciences sector rose from 5% to 8% over the same period, showcasing the growing diversification in the GCC landscape.

### City-wise Absorption

Bengaluru remained the leader in GCC leasing, accounting for 65% (12.43 msf) of the city’s overall office absorption in the fiscal, the highest contribution among the top seven real estate markets. This share was up from 55% a year earlier. Out of the total area absorbed by GCCs in FY25, 47% was leased by Fortune 500 companies in Bengaluru.

In Hyderabad, GCCs accounted for 46% of the city’s overall absorption in FY25, the second-highest contribution among the top seven cities. Chennai followed closely with GCCs accounting for 42.1% of the city’s total office leasing. The IT-ITeS sector dominated GCC absorption in Chennai with a 54% share in FY25.

In Mumbai, the share of GCCs in the city’s total absorption increased from 15% in FY24 to 26% in FY25. In Delhi-NCR, GCCs accounted for 28.3% of the city’s total office leasing. The share of Fortune 500 companies in the overall area absorbed by GCCs in NCR rose to 50% in FY25 from 40% a year ago.

This robust growth in office leasing by GCCs underscores the ongoing strength and diversification of India’s real estate market, driven by a combination of strategic advantages and a supportive business environment.