GCCs leased 31.8 million sq ft in FY25, reports 24% YoY growth

Global Capability Centres (GCC) leased 31.8 million sq ft in FY25, against 25.6 msf in the previous year, an 24% increase, as GCCs continues to be the primary growth driver of India’s office market.

This growth has been fueled by cost optimization strategies, skilled talent pool, rapid infrastructure development, favourable government policies, ease of doing business, and a supportive business environment

According to Vestian data, GCCs accounted for 42% of the pan-India absorption in FY 2025, registering a marginal increase from 41% a year earlier.

“GCCs contribute significantly to the office market in India, accounting for over 40% of the absorption recorded in the past two years. This share is expected to grow even further fueled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services. India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem,” said Shrinivas Rao, FRICS, CEO, Vestian.

Fortune 500 GCCs leased 13.5 million sq ft office space, accounting for 43% of the total area leased by GCCs in FY 2025. The leased area increased by 25% over the previous year,reinforcing India’s position as the preferred destination for global enterprises setting up GCCs.

"The demand from GCCs for Grade A office spaces in India remains strong. Within this segment, we are seeing a distinct preference for managed workspace solutions. This trend is clearly reflected in the growing adoption of Table Space’s managed office offerings. This significant growth isn't just a developing trend; it represents the realization of a market shift towards integrated, large-format managed office solutions,” said Karan Chopra, chairman and Co-CEO, Table Space.

The IT-ITeS sector continued to dominate GCC absorption with 46% share in FY 2025; however, the share contracted from 53% over the previous year. On the other hand, the share of BFSI sector surged to 22% in FY 2025 from 14% a year earlier.

Similarly, the share of Healthcare & Lifesciences sector also witnessed an increase from 5% to 8% during the same period, showcasing the growing diversification in the GCC landscape. While the share of Engineering & Manufacturing dropped from 9% to 4%, the share of Consulting Services remained largely stable at 6% in FY 2025.