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Global Capability Centres (GCCs) were the biggest contributors to India's office leasing in the past financial year, accounting for 42% of total leasing activity up from 41% previously. They occupied 31.8 million sq ft of office space, recording a 24% year-on-year growth. While the number of deals dipped slightly, the average deal size increased considerably, with large-sized transactions rising 44%. Nearly 43% of this demand came from Fortune 500 companies. The leasing momentum was strongest in Bengaluru, followed by Mumbai, NCR, Pune, and Hyderabad, with sectoral growth led by IT, BFSI, and life sciences.
Global Capability Centres have once again emerged as the single largest driver of India's office leasing market, cornering 42% of the total office space leased across the country during the last financial year. This marks a slight rise from the 41% share recorded in the previous year. According to data released by real estate advisory firm Vestian, GCCs absorbed 31.8 million square feet of office space across India, reflecting a robust 24% growth over the previous year. Advertisement
While the total number of leasing transactions dropped by 4% to 305 deals, the size of individual leases has gone up, pointing to a shift towards larger, more consolidated occupancies. The share of large-ticket leases defined as those exceeding 100,000 sq ft jumped significantly by 44%, from 15.8 million sq ft to 22.8 million sq ft.
Fortune 500 companies, operating through their GCCs in India, leased 13.5 million sq ft in total, a 25% jump from the previous year. These companies alone accounted for 43% of the total GCC-led leasing in FY25, underscoring India?s strategic importance in global enterprise operations.
The IT-ITeS sector continued to dominate, contributing 46% of the total GCC leasing activity, although its share declined from 53% the year before. Meanwhile, the Banking, Financial Services, and Insurance (BFSI) segment made notable gains, rising from 14% to 22%. The Healthcare & Lifesciences sector also grew its presence, increasing its share from 5% to 8%. On the other hand, Engineering & Manufacturing slipped to 4%, and Consulting Services held steady at around 6%.
Among cities, Bengaluru led with GCCs accounting for 65% of the city's total office leasing up from 55% the previous year. A large chunk of this demand, around 47%, came from Fortune 500 firms. Mumbai saw a remarkable upswing as well, where the share of GCC-led leasing doubled to 26% amid a 170% year-on-year rise in space take-up. In the National Capital Region (NCR), Fortune 500 GCCs contributed half of the leasing share, with a 142% increase in large-format deals.
Pune also posted strong growth, with GCC leasing up by 46%, primarily led by IT-ITeS players who made up 61% of the city's absorption. Hyderabad and Chennai retained solid market positions with sustained demand, although Chennai saw a marginal decline in volumes. Kolkata, however, experienced a dip in GCC-related leasing activity.
Shrinivas Rao, CEO of Vestian, observed that the rising demand from GCCs reflects a broader shift in the global operations strategy of multinationals. He stated that India remains highly attractive due to its skilled talent pool, favourable cost structures, improving physical and digital infrastructure, and supportive government policies. He noted that sectors such as technology, BFSI, healthcare, engineering, and consulting would continue to see aggressive expansion through their Indian GCC operations.
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