NEW DELHI: In 2025, Global Capability Centres (GCCs) became the primary demand driver in India’s office sector, representing 45% of total leasing, up from 41% the previous year, as per a report by Vestian.
Office spaces occupied by GCCs increased to 34.9 million sq ft in 2025, reflecting a 20% year-on-year growth. This surge was fueled by robust demand from GCCs, bolstered by favorable policy conditions in India and tightened work visa regulations in key international markets. Consequently, overall office absorption in India reached a record 78.2 million sq ft, an 11% increase compared to 2024, despite global economic and geopolitical challenges.
New office completions also experienced an eight percent rise year-on-year, reaching 55.5 million sq ft in 2025, the highest annual supply addition on record.
Pan-India office vacancy rates decreased by 310 basis points to 10.8% in 2025, down from 13.9% a year prior. Most key markets saw improvement in vacancy rates, except for Pune, which experienced a 4.6% increase in vacancies due to substantial supply additions of about 12 million sq ft during the year.
The IT–ITeS sector emerged as the largest contributor to leasing activity, accounting for 38% of total absorption, followed by the BFSI and flexible workspace sectors, each with a 14% share. Notably, over half of IT–ITeS leasing was driven by GCCs, which accounted for nearly 60% of all transactions in the sector.
Bengaluru took the lead in GCC leasing, securing 32% of the total area absorbed in 2025, with Hyderabad following at 19%. In the National Capital Region (NCR), GCC activity surged, with their share increasing from 18% in 2024 to 45% in 2025.
India’s office market continues on a recovery path, with annual absorption rising from 61 million sq ft in 2023 to 70 million sq ft in 2024, and nearing 80 million sq ft in 2025. At this growth rate, office leasing is projected to reach 85–90 million sq ft by 2026, with GCCs likely accounting for over half of the total absorption, driven by ongoing expansion in technology, BFSI, healthcare, engineering, and R&D sectors.
