NEW DELHI: Global Capability Centres (GCCs) have solidified their role in India’s office leasing landscape for FY25, contributing to 42% of total office space absorption nationwide, a slight increase from 41% the previous year, as reported by Vestian, a real estate consultancy firm.
During the fiscal year, GCCs leased 31.8 million sq ft of office space, marking a substantial 24% growth year-on-year. Despite a 4% drop in the number of GCC transactions to 305 deals, the average leased area per transaction has increased, indicating a shift towards larger office spaces and long-term expansion plans.
The report notes a remarkable 44% increase in large office transactions—defined as those over 100,000 sq ft—growing from 15.8 million sq ft in FY24 to 22.8 million sq ft in FY25. Notably, Fortune 500 companies accounted for 13.5 million sq ft, representing 43% of the total GCC-leased area, reflecting a 25% annual increase.
Sectoral Trends Among GCCs
The IT-ITeS sector still dominates, covering 46% of GCC leasing in FY25, although this is a decrease from 53% last year. Conversely, the BFSI sector increased its share from 14% to 22%, while Healthcare & Lifesciences rose from 5% to 8%, indicating a diversification in the tenant mix. Engineering & Manufacturing dropped to 4% from 9%, and Consulting Services remained stable at around 6%.
Bengaluru Maintains Top Position
Bengaluru continues to lead among the top seven office markets, with GCCs responsible for 65% of total absorption in the city, up from 55% in FY24. Notably, 47% of the GCC-leased area in Bengaluru was utilized by Fortune 500 firms, reinforcing the city’s reputation as a global hub for multinational back-office operations.
| City | Office Space Absorbed by GCCs | % Share in Pan-India Absorption | Annual % Change in Area Absorbed by GCCs | ||
| FY 2025 | FY 2024 | FY 2025 | FY 2024 | ||
| Bengaluru | 12.43 | 8.34 | 64.9% | 54.5% | 49.1% |
| Hyderabad | 6.26 | 6.45 | 46.4% | 48.3% | -2.9% |
| Chennai | 3.15 | 4.45 | 42.1% | 51.9% | -29.2% |
| Mumbai | 3.68 | 1.36 | 26.1% | 14.6% | 170.3% |
| NCR | 2.78 | 2.57 | 28.3% | 27.9% | 8.1% |
| Pune | 3.34 | 2.28 | 31.8% | 36.9% | 46.4% |
| Kolkata | 0.11 | 0.17 | 17.3% | 25.5% | -36.0% |
Hyderabad followed with a 46% share of GCCs in total office leasing, despite a slight decline in large deal activity. In Chennai, IT-ITeS firms led the leasing scene but their share decreased from 61% to 54%, while Healthcare & Lifesciences increased their footprint, now accounting for 14% of GCC absorption, up from 4%. Mumbai experienced a 52% increase in total office leasing, primarily due to GCCs whose share surged from 15% to 26% in FY25. In the NCR, Fortune 500 companies leased larger spaces, with their share rising to 50% of all GCC absorption, backed by a 142% increase in large-deal areas.
In Pune, IT-ITeS firms dominated the GCC landscape, holding 61% of all centres, followed by BFSI at 16% and Engineering & Manufacturing at 7%.
Shrinivas Rao, the CEO of the consultancy, mentioned that the positive trend is expected to persist as GCCs from various sectors such as IT, BFSI, healthcare, and consulting continue to expand operations in India, taking advantage of its talent pool, cost efficiencies, and favorable business environment.
