Global capability centres (GCCs), which have been the primary growth driver of India’s office market for the past couple of years, continued their domination in office leasing in 2024-25 as well, accounting for 42 percent of the pan-India absorption in the financial year.
According to data from Vestian, a real estate consultancy firm, in terms of value, GCC absorption increased by 24 percent during FY25 and reached 31.8 million square feet (msf). The area leased under large transactions (above 100,000 sq. ft.) rose 44 percent, from a collective 15.8 msf in FY24 to 22.8 msf in FY25.
GCCs of Fortune 500 corporations led the charge, leasing 13.5 msf office space, accounting for 43 percent of the total area leased by such entities in the fiscal. The data showed that the leased area increased by 25 percent over the previous year, reinforcing India’s position as the preferred destination for GCCs.
Market observers said this growth was being fuelled by cost optimisation strategies, a skilled talent pool, rapid infrastructure development, favourable government policies and a supportive business environment.
Shrinivas Rao, CEO, Vestian, said that GCCs' contribution in office leasing is expected to grow even further on the back of the expansion by large conglomerates from industries such as IT-ITeS, banking, financial services and insurance (BFSI), healthcare and lifesciences, engineering and manufacturing, and consulting services.
“India continues to offer a compelling value proposition through its skilled talent base, operational scalability and robust ecosystem,” he said.
He added that the IT/ITeS sector continued to dominate GCC absorption with 46 percent share in FY25, even if a drop from the 53 percent recorded the previous year.
On the other hand, the share of the BFSI sector surged to 22 percent in FY25 from 14 percent a year earlier. Similarly, the share of the healthcare and lifesciences sector rose from 5 percent to 8 percent 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 percent (12.43 msf) of the city’s overall office absorption in the fiscal, the highest contribution among the top seven real estate markets. The share was up from 55 percent a year earlier. Out of the total area absorbed by GCCs in FY25, 47 percent was leased by Fortune 500 companies in Bengaluru.
In Hyderabad, GCCs accounted for 46 percent of the city’s overall absorption in FY25, the second-highest contribution among the top seven cities. This was followed by Chennai with GCCs accounting for 42.1 percent of the city’s total office leasing. The IT-ITeS sector dominated GCC absorption in Chennai with 54 percent share in FY25.
In Mumbai, the share of GCCs in the city’s total absorption increased from 15 percent in FY24 to 26 percent in FY 25. In Delhi-NCR, GCCs accounted for 28.3 percent share 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 percent in FY25 from 40 percent a year ago.
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