Are GCCs the Main Force Behind India's Office Market Growth?
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Synopsis
In a striking report, it's revealed that Global Capability Centres are driving India's office market forward, achieving record absorption rates despite global uncertainties. Discover how these centers are reshaping the landscape and the emerging trends in leasing activity across the nation.
Key Takeaways
- GCCs are the primary growth drivers in India’s office market.
- Total office absorption reached 78.2 million square feet in 2025.
- Vacancy rates decreased to 10.8 percent.
- IT-ITeS sector accounted for 38 percent of total absorption.
- Future projections indicate further growth driven by GCC demand.
New Delhi, Jan 19 (NationPress) Global Capability Centres (GCCs) have established themselves as the primary catalyst for the growth of India’s office market in 2025, representing 45 percent of the total absorption across the nation, a rise from 41 percent in 2024, as per a report released on Monday.
In absolute figures, the absorption driven by GCCs reached 34.9 million square feet, showing a remarkable 20 percent increase year-on-year, according to the Vestian report.
The report further indicated that robust demand from GCCs, bolstered by a favorable policy landscape and restrictions on H1-B visas, propelled the overall office absorption in India to a record peak of 78.2 million square feet in 2025.
In spite of persistent global economic uncertainties and geopolitical challenges, total absorption showed an 11 percent year-on-year growth, reflecting the resilience of India’s office market, the report highlighted.
Office absorption significantly outpaced new supply in 2025, contributing to a noteworthy rise in occupancy rates. The national vacancy rate fell by 310 basis points, decreasing from 13.9 percent in 2024 to 10.8 percent in 2025.
The IT–ITeS sector remained the leading force in leasing activity, accounting for 38 percent of total absorption, followed closely by BFSI and flex spaces, each holding a 14 percent share. This trend signals a growing diversification in office demand, as noted in the report.
Remarkably, over half of the IT-ITeS companies leasing office spaces in 2025 were GCCs.
In monetary terms, GCCs contributed to nearly 60 percent of the total area transacted by the IT–ITeS sector, reinforcing their pivotal role in market expansion, the report added.
Bengaluru led the charge with a 32 percent share of the total area absorbed by GCCs in 2025, followed by Hyderabad at 19 percent.
Office absorption has shown a consistent upward trend, and at the current rate, absorption is projected to rise further to 85-90 million square feet by the end of 2026.
This growth is expected to be largely driven by continued demand from GCCs, the report concluded.
Point of View
I observe that the rise of Global Capability Centres signifies a robust evolution in India's office market. Their increasing contribution is a testament to the strength and resilience of our economy, even amidst global turbulence. The diversification in sectoral demand emphasizes a promising trend toward sustained growth.
NationPress
20/01/2026
Frequently Asked Questions
What are Global Capability Centres (GCCs)?
Global Capability Centres (GCCs) are specialized units established by multinational corporations to leverage local talent and resources to deliver services or products.
How much of the office market do GCCs control?
In 2025, GCCs accounted for 45 percent of total pan-India office market absorption.
What factors are driving the growth of the office market in India?
Strong demand from GCCs, a favorable policy environment, and restrictions on H1-B visas are significant factors driving growth.
What is the projected office absorption for 2026?
Office absorption is expected to rise to 85-90 million square feet by the end of 2026.
Which city leads in GCC office absorption?
Bengaluru dominated with a 32 percent share of total area absorbed by GCCs in 2025.
