Curation Team
NEW DELHI: Global Capability Centres (GCCs) continued to anchor India’s office leasing momentum in FY25, accounting for 42% of the total office absorption across the country, marginally up from 41% a year earlier, according to a new report by Vestian, a real estate consultancy firm.
GCCs leased 31.8 million sq ft of office space during the fiscal year, marking a 24% year-on-year growth. While the number of GCC transactions dropped 4% to 305 deals, the average leased area per transaction increased, reflecting a trend towards larger office spaces and long-term expansion commitments.
The report highlights a 44% surge in large office transactions—defined as deals exceeding one lakh sq ft – rising from 15.8 million sq ft in FY24 to 22.8 million sq ft in FY25. Fortune 500 companies alone accounted for 13.5 million sq ft, representing 43% of the total GCC-leased area and registering a 25% annual increase.
Sectoral shift within GCCs
The IT-ITeS sector remained the dominant force, comprising 46% of GCC leasing in FY25, although its share contracted from 53% a year ago. In contrast, BFSI firms expanded their share from 14% to 22%, while Healthcare & Lifesciences rose from 5% to 8%, pointing to greater diversification in the tenant mix. Engineering & Manufacturing dropped to 4% from 9%, and Consulting Services held steady at around 6%.
Bengaluru retains its lead
Among the top seven office markets, Bengaluru maintained its leadership, with GCCs driving 65% of the city’s total absorption, up from 55% in FY24. Notably, 47% of the GCC-leased area in Bengaluru was occupied by Fortune 500 firms, reaffirming the city’s status as a global hub for multinational back-office operations.
Hyderabad followed with 46% GCC share in total office leasing, though large deal activity slightly declined. In Chennai, IT-ITeS firms led leasing but saw a drop in share from 61% to 54%, while Healthcare & Lifesciences grew their footprint, accounting for 14% of GCC absorption, up from 4%.Mumbai saw a 52% rise in total office leasing, primarily driven by GCCs whose share in the city’s absorption jumped from 15% to 26% in FY25. In NCR, Fortune 500 firms leased larger spaces, with their share rising to 50% of all GCC absorption, supported by a 142% increase in large-deal area.
In Pune, IT-ITeS firms dominated the GCC landscape with 61% of all centres, followed by BFSI (16%) and Engineering & Manufacturing (7%).
Shrinivas Rao, CEO of the company said the upward trend is likely to continue, as GCCs from industries such as IT, BFSI, healthcare, and consulting expand operations in India, capitalising on its talent availability, cost efficiency, and enabling business environment.
