GCC Expansion Drives Growth in India’s Office Real Estate Market
Strong demand from Global Capability Centres boosts office absorption and occupancy, Bengaluru and Hyderabad lead the way
India, Jan 19 : Global Capability Centres (GCCs) emerged as the key growth engine of India’s office market in 2025, accounting for 45% of total pan India office absorption, up from 41% in 2024, according to a Vestian report released on Monday.
In absolute terms, GCC-led absorption reached 34.9 million sq ft, marking a 20% year on year increase. Strong demand from GCCs, coupled with a supportive policy environment and H1-B visa restrictions, helped pan India office absorption touch an all time high of 78.2 million sq ft in 2025.
Despite global macroeconomic uncertainties and geopolitical challenges, total office absorption rose 11% year on year, highlighting the resilience of India’s office market. Office absorption continued to outpace new supply, pushing occupancy levels higher and reducing the pan-India vacancy rate by 310 basis points to 10.8% from 13.9% in 2024.
The IT–ITeS sector remained the dominant driver of leasing activity, contributing 38% of total absorption, followed by BFSI and flex spaces at 14% each. Notably, over half of IT–ITeS occupiers leasing space in 2025 were GCCs, which contributed nearly 60% of the sector’s transacted area, reaffirming their pivotal role in market growth.
Bengaluru led absorption among GCCs with a 32% share, followed by Hyderabad at 19%. Office absorption is projected to continue its upward trajectory, expected to reach 85–90 million sq ft by the end of 2026, driven primarily by sustained GCC demand.
This trend underscores the growing influence of GCCs in shaping India’s office real estate landscape, positioning the country as a preferred destination for corporate office expansion.
