GCCs Drive 42% of India’s Office Space Absorption in FY25: Vestian

Global Capability Centres (GCCs) have emerged as the primary growth engine of India’s office real estate market over the past few years. According to Vestian’s latest report, GCCs accounted for 42% of pan-India office absorption in FY2025, up slightly from 41% in FY2024. In absolute terms, this translated to a 24% YoY increase in leased space, reaching 31.8 million sq ft.

This robust growth was driven by factors such as cost efficiency, a skilled talent pool, infrastructure upgrades, pro-business government policies, and ease of doing business. Interestingly, while the total leased area grew, the number of GCC transactions declined by 4% to 305 in FY2025. This trend indicates a shift towards larger office spaces and long-term expansion strategies among GCCs.

Large-ticket transactions (over 1 lakh sq ft) surged by 44%, rising from 15.8 million sq ft in FY2024 to 22.8 million sq ft in FY2025. Additionally, Fortune 500 GCCs leased 13.5 million sq ft—43% of total GCC absorption—reflecting a 25% annual rise and reinforcing India’s global appeal as a hub for strategic enterprise functions.

Shrinivas Rao, FRICS, CEO, Vestian said, “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 .”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.