Are GCCs Leading India Office Leasing in FY25 with Fortune 500 Companies?
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Synopsis
Explore the significant role of Global Capability Centres (GCCs) in India's office leasing market for FY25, driven by Fortune 500 companies. With a notable increase in absorption rates, GCCs are reshaping the landscape, showcasing India's appeal as a prime destination for global enterprises.
Key Takeaways
- GCCs accounted for 42% of total office absorption in FY25.
- Absorption increased by 24% to 31.8 million sq ft.
- Fortune 500 GCCs leased 13.5 million sq ft, a 25% increase.
- IT-ITeS sector led with a 46% share in GCC absorption.
- Bengaluru accounted for 65% of GCCs' absorption.
New Delhi, July 2 (NationPress) Global capability centres (GCCs) represented 42 percent of the total office absorption across India in FY25, marking an increase from 41 percent in the previous year, as detailed in a report released on Wednesday.
In terms of value, GCC absorption surged by 24 percent during this timeframe, reaching 31.8 million square feet, according to the report by Vestian.
Moreover, Fortune 500 GCCs leased 13.5 million sq ft of office space, which accounted for 43 percent of the total leased area by GCCs in FY2025. This leased area saw a growth of 25 percent compared to the previous year, further solidifying India’s status as a leading choice for global firms establishing GCCs.
Over recent years, GCCs have been a major driving force behind the growth of India’s office market. This expansion has been propelled by cost optimization strategies, a talented workforce, rapid infrastructure improvements, supportive government policies, and a favorable business climate.
“GCCs play a crucial role in the Indian office market, contributing more than 40 percent of absorption in the last two years. This share is anticipated to rise further, driven by the expansion of large corporations across various sectors including IT-ITeS, BFSI, Healthcare and Lifesciences, Engineering and Manufacturing, and Consulting Services,” remarked Shrinivas Rao, FRICS, CEO of Vestian.
India continues to present an attractive value proposition with its skilled talent pool, operational scalability, and a robust ecosystem, he noted.
The IT-ITeS sector maintained its dominance in GCC absorption with a 46 percent share in FY2025. Conversely, the BFSI sector’s share increased to 22 percent, up from 14 percent the previous year.
Likewise, the healthcare and lifesciences sector saw its share rise from 5 percent to 8 percent during the same timeframe, reflecting the growing diversity within the GCC landscape, according to the report.
In Bengaluru, GCCs constituted 65 percent of the city’s total absorption in FY2025, marking the highest contribution among the top seven cities.
Point of View
It is evident that GCCs are not just a passing trend but a vital component of India's evolving office market. Their consistent growth indicates a strong appetite for business expansion in India, reflecting the nation's competitive advantages in talent and infrastructure. Our commitment remains to keep our readers informed on such pivotal developments.
NationPress
08/10/2025
Frequently Asked Questions
What percentage of office absorption do GCCs account for in FY25?
GCCs accounted for 42 percent of the total office absorption across India in FY25.
How much office space did Fortune 500 GCCs lease?
Fortune 500 GCCs leased 13.5 million square feet of office space in FY2025.
What factors contribute to the growth of GCCs in India?
Growth is driven by cost optimization, a skilled workforce, infrastructure development, and supportive government policies.
Which sector leads in GCC absorption?
The IT-ITeS sector leads with a 46 percent share in GCC absorption for FY2025.
What city had the highest GCC contribution?
Bengaluru had the highest contribution, with GCCs accounting for 65 percent of the city's overall absorption in FY2025.
