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Leasing of office spaces for Global Capability Centres (GCCs) in India rose by 24% to 31.8 million sq ft across seven major cities last fiscal year. GCCs accounted for 42% of pan-India office absorption in 2024-25. This growth, detailed in a Vestian report, is driven by India's skilled talent, cost benefits, infrastructure development, and favorable policies. Bengaluru led in GCC office space absorption, followed by Mumbai. GCCs are expected to further increase their market share, reflecting India's appeal as a global operations hub for conglomerates.
Global Capability Centres (GCCs) increased their leasing of office spaces during the most recent fiscal year. This trend, seen across India's seven major cities, marks a significant expansion of their operations in the country. This was achieved by renting millions of square feet for their growing presence. Advertisement
Data from real estate consultant Vestian shows that office space leased by GCCs stood at 31.8 million square feet (318 lakh square feet) in 2024-25. This is up from 25.6 million square feet (256 lakh square feet) in the year before, representing a 24% increase. Vestian states that GCCs have been the primary reason for growth in India's office market over the past couple of years.
This expansion is driven by strategies to reduce costs, India's skilled workforce, rapid infrastructure development, government policies that support business, and an overall good business environment. GCCs accounted for 42% of all office space rented across India in 2024-25, a small rise from 41% a year earlier.
Shrinivas Rao, CEO of Vestian, stated that GCCs contribute significantly to the office market in India, making up over 40% of the space rented in the past two years. He added that this share is expected to grow even further, fueled by the expansion of large companies from various sectors such as IT-ITeS, BFSI (Banking, Financial Services, and Insurance), Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services.
Rao also stated that India continues to offer good value through its skilled workforce, ability to scale operations, and a strong supporting ecosystem. Among cities, Bengaluru saw the most office space leased by GCCs, reaching 12.43 million square feet last fiscal year, up from 8.34 million square feet in the year before.
In Mumbai, office space taken by GCCs jumped to 3.68 million square feet in 2024-25, compared to 1.36 million square feet in the year before. Key players in the Indian office market include major real estate developers like DLF Ltd, Embassy Group, Prestige Group, RMZ Group, and Tata Realty & Infrastructure Ltd. Also, three office assets-backed REITs (Real Estate Investment Trusts) are prominent: Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Embassy Office Parks REIT.
Source: PTI
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