India's Office Market 2025: GCCs Drive Record Real Estate Boom Amid IT Layoffs

In 2025, the Indian office market witnessed a significant transformation, driven by the surge in Global Capability Centres (GCCs). According to recent data, GCCs accounted for a remarkable 41% of gross office leasing, a notable increase from 36% in 2024. This growth underscores the critical role GCCs play in the real estate sector, particularly in the context of India's evolving business landscape.

The top seven cities in India collectively recorded an 8% increase in new office completions, growing from 48.11 million square feet in 2024 to 51.83 million square feet in 2025. Bengaluru, the tech hub of the country, led the charge with 13.5 million square feet of new supply, up from 12.5 million square feet the previous year. This surge in office space is a testament to the city's continued attractiveness for businesses and its robust infrastructure.

Despite the positive trends in office leasing, the year 2025 also saw a wave of IT layoffs. Many IT companies, facing economic headwinds and a shift towards automation, downsized their workforce. However, the impact on the office market was mitigated by the strong demand from GCCs, which continued to expand their operations in India. These centers, often established by multinational corporations to leverage the country's skilled workforce and cost advantages, have become a cornerstone of the real estate sector.

The growth of GCCs is not limited to just leasing office space. These centers are also contributing to the development of ancillary services and infrastructure, such as transportation and amenities, which further enhance the appeal of these cities. For instance, the expansion of GCCs in Bengaluru has led to the development of new commercial districts and improved public transport systems, making the city more attractive to both businesses and employees.

The rise of GCCs has also had a broader economic impact. By bringing in foreign investment and creating high-skilled jobs, these centers are contributing to India's economic growth and global competitiveness. The government has been proactive in supporting this trend, offering various incentives and policies to attract more GCCs to the country.

However, the rapid growth of the office market also poses challenges. The increasing demand for office space has led to higher rental rates, which could be a concern for smaller businesses and startups. Additionally, the construction of new office buildings must be balanced with environmental considerations to ensure sustainable development.

In conclusion, the Indian office market in 2025 has seen a remarkable boom, driven by the expansion of Global Capability Centres. Despite the headwinds faced by the IT sector, GCCs have emerged as a key driver of growth, contributing to the development of infrastructure and the economy. As the market continues to evolve, it will be crucial to address the challenges and ensure that the benefits are shared by all stakeholders.