Will GCCs in India Make Up 35-40% of Total Office Demand?
Synopsis
GCCs are set to represent a significant portion of India's office demand by 2025. With a focus on sustainability and innovative work environments, the report highlights robust growth in leasing across sectors, particularly in technology and logistics.
Key Takeaways
GCCs projected to make up 35–40% of total office demand in 2025.
More than 55% of significant office deals in 2025 were attributed to GCCs.
Office leasing expected to exceed 80 million sq. ft. in 2025.
84% of new supply was green-certified.
Strong demand trends highlight a shift towards sustainability and innovation.
New Delhi, Dec 17 (NationPress) Global Capability Centres (GCCs) are anticipated to represent 35–40 percent of the overall office demand by 2025. Furthermore, they constituted over 55 percent of significant office transactions during the initial nine months of CY25, according to a report released on Wednesday.
The study from CBRE South Asia Private Limited indicated that strong demand fundamentals are set to support another record-breaking year for office leasing, with gross leasing projected to exceed 80 million sq. ft. in 2025.
Between January and September, approximately 60 million sq. ft. of gross leasing was recorded, marking the highest total for the first nine months in history.
The firm predicts that robust demand fundamentals will continue to encourage leasing activity in 2026, driven by portfolio growth, workplace redesign, and an ongoing transition towards premium, future-ready properties.
Occupiers are increasingly prioritizing sustainability, with many tenants already establishing their ESG goals, as highlighted in the report.
This year, companies invested in collaborative and innovation-driven workspaces, fueling the demand for high-quality, tech-enabled, and experience-oriented environments.
About 84 percent of the newly supplied spaces during this period received green certification, and 77 percent of leasing occurred in these projects.
Office space leasing remained diverse, led by technology companies and bolstered by flex operators, BFSI, engineering, and manufacturing sectors.
Moreover, Industrial & Logistics (I&L) leasing experienced steady growth, primarily driven by third-party logistics (3PL) firms and e-commerce businesses, with Delhi NCR, Bengaluru, and Hyderabad collectively accounting for nearly 60 percent of space uptake.
Large transactions exceeding 1 lakh sq. ft. propelled space absorption, rising to a 38 percent share of absorption in 9M 2025, compared to 27 percent the previous year.
Retail space absorption reached 4.6 million sq. ft., primarily driven by the fashion and apparel sector, which made up nearly half of the demand, while residential sales surpassed 2.1 lakh units in 9M 2025.
Equity inflows into real estate increased by 14 percent year-on-year to $10.2 billion in 9M 2025, with full-year investments expected to reach $12–14 billion.
Point of View
The insights provided by CBRE underscore a significant shift in India's commercial real estate dynamics. The emphasis on sustainability and innovation aligns with global trends, indicating a proactive response from occupiers in adapting to changing work environments. As GCCs continue to play a pivotal role, it's essential to monitor these developments closely for broader economic implications.
NationPress
9 May 2026
Frequently Asked Questions
How much office demand will GCCs account for by 2025?
GCCs are expected to account for 35–40 percent of total office demand in India by 2025.
What trends are driving office leasing in India?
Key trends include portfolio expansion, workplace reconfiguration, and a shift towards premium, tech-enabled assets, with a growing focus on sustainability.
Which sectors are leading in office space leasing?
Technology firms, flex operators, BFSI, engineering, and manufacturing sectors are leading in office space leasing.
What is the projected investment in real estate for 2025?
Equity inflows into real estate are projected to reach between $12–14 billion for the full year of 2025.
