NewKerala.com

GCCs Drive Record Office Demand in India, Absorb 45% of Market in 2025

Global Capability Centres (GCCs) were the primary driver of India's office market in 2025, accounting for 45% of total absorption. This strong demand, supported by policy and H1-B visa restrictions, propelled pan-India absorption to an all-time high of 78.2 million square feet. The market showed resilience with 11% year-on-year growth, leading to a significant drop in vacancy rates. Bengaluru dominated GCC leasing, and absorption is projected to rise further to 85-90 million sq ft by 2026.

Key Points: GCCs Lead India Office Market Growth, 45% Absorption in 2025

  • GCCs drove 45% of office absorption
  • Pan-India absorption hit record 78.2 mn sq ft
  • Vacancy rate fell to 10.8% from 13.9%
  • Bengaluru led with 32% of GCC leasing
2 min read

GCCs emerge as primary growth driver for India's office market

GCCs accounted for 45% of India's office absorption in 2025, driving record demand and reducing vacancy rates. Explore the key trends and data.

"GCC-led absorption reached 34.9 million square feet, registering a 20 per cent year-on-year increase - Vestian Report"

New Delhi, Jan 19

Global Capability Centres emerged as the primary growth driver of India's office market in 2025, accounting for 45 per cent of the total pan-India absorption, up from 41 per cent in 2024, a report showed on Monday.

In absolute terms, GCC-led absorption reached 34.9 million square feet, registering a 20 per cent year-on-year increase, said the Vestian report.

The report further stated that strong demand from GCCs, supported by a favourable policy environment and restrictions on the H1-B visa, propelled pan-India office absorption to an all-time high of 78.2 mn sq ft in 2025.

Despite ongoing global macroeconomic uncertainties and geopolitical headwinds, total absorption recorded an 11 per cent year-on-year growth, underscoring the resilience of India's office market, the report mentioned.

Office absorption continued to outpace new supply by a wide margin in 2025, leading to a notable improvement in occupancy levels. The pan-India vacancy rate declined by 310 basis points, from 13.9 per cent in 2024 to 10.8 per cent in 2025.

IT-ITeS sector continued to dominate leasing activity, accounting for 38 per cent of the total absorption, followed by BFSI and flex spaces, each with 14 per cent share. This trend highlights increasing sectoral diversification in office demand, said the report.

Notably, over half of the IT-ITeS occupiers leasing office space in 2025 were GCCs.

In value terms, GCCs contributed to nearly 60 per cent of the total area transacted by the IT-ITeS sector, reaffirming their central role in market expansion, it added.

Bengaluru dominated with 32 per cent share of the total area absorbed by GCCs in 2025, followed by Hyderabad with 19 per cent share.

Office absorption has demonstrated a consistent upward trajectory and at the current pace, absorption is expected to rise further to 85-90 million sq ft by the end of 2026.

This growth is expected to be driven largely by sustained GCC demand, said the report.

- IANS

Share this article:

Reader Comments

R
Rohit P
Great to see Bengaluru and Hyderabad leading, but I hope this growth spreads to Tier-2 cities as well. Places like Pune, Coimbatore, and Ahmedabad have great talent and lower costs. The infrastructure needs to keep pace though!
A
Aman W
While the numbers are impressive, we must be cautious. This growth is heavily linked to H-1B visa restrictions abroad. What if those policies change? We need to build domestic tech giants that are globally competitive, not just rely on foreign GCCs.
S
Sarah B
Working in a GCC in Hyderabad, I can confirm the pace is incredible. The projects are cutting-edge and the work culture is improving. It feels good to solve global problems from right here in India.
V
Vikram M
The reduction in vacancy rates is a very positive sign. It shows real, sustained demand. This should encourage more developers to build Grade-A office spaces, which will uplift our city skylines and infrastructure.
K
Kavya N
Hope this translates into better pay and work-life balance for employees. Sometimes these global companies bring their pressure-cooker cultures with them. Growth is good, but the well-being of the workforce is paramount.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50