GCCs Dominate Office Leasing in FY 2025: Report

New Delhi, July 2, 2025: Over the past couple of years, GCCs have been the primary growth driver of the office market. The growth has been fuelled by cost optimisation strategies, a skilled talent pool, rapid infrastructure development, favourable government policies, ease of doing business and a supportive business environment.

Per Vestian’s latest report, GCCs accounted for 42 per cent of the pan-India absorption in FY 2025, registering a marginal increase from 41 per cent a year earlier. In terms of value, GCC absorption increased by 24 per cent during the same period stated above, reaching 31.8 mn sq ft (MSF).

Despite significant growth in the leased area, GCC transactions declined by four per cent annually, totalling 305 transactions in FY 2025. This growth in terms of area and degrowth in terms of the number of transactions depicts GCCs’ growing preference for larger office spaces and long-term expansion plans. This can also be substantiated by an increase in large transactions (above 1 lakh sq ft), which rose 44 per cent from 15.8 MSF in FY 2024 to 22.8 MSF in FY 2025.

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

GCC absorption

Source: Vestian Research

“GCCs contribute significantly to the office market in India, accounting for over 40 per cent of the absorption recorded in the past two years. This share is expected to grow even further fuelled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, healthcare and lifesciences, engineering and manufacturing and consulting services,” said Shrinivas Rao, FRICS, CEO, Vestian.

“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 a 46 per cent share in FY 2025; however, the share contracted from 53 per cent over the previous year. On the other hand, the share of the BFSI sector surged to 22 per cent in FY 2025 from 14 per cent a year earlier.

Similarly, the share of the healthcare and lifesciences sector also increased from five per cent to eight per cent during the same period, showcasing the growing diversification in the GCC landscape. While the share of engineering and manufacturing dropped from nine per cent to four per cent, the share of consulting services remained largely stable at six per cent in FY 2025.

Industry-wise absorption (% of total area absorbed by GCCs)

Source: Vestian Research

Others include automobile, aviation, chemicals and petrochemicals, consumer goods and services, data centres, electronics, energy, FMCD/FMCG, infra, real estate and logistics, metals and mining, telecom and media and travel and tourism

City-wise Analysis:

Bengaluru: GCCs accounted for 65 per cent of the city’s overall absorption in FY 2025, the highest contribution among the top seven cities. The share has also grown from 55 per cent a year earlier. Out of the total area absorbed by GCCs in FY 2025, 47 per cent was leased by Fortune 500 companies. This showcases the city’s appeal as a global GCC hub

Hyderabad: GCCs accounted for 46 per cent of the city’s overall absorption in FY 2025, the second-highest contribution among the top seven cities. However, the area absorbed under the large-sized deals decreased by five per cent in FY 2025 over the previous year, indicating a cautious approach by GCCs in the city while leasing larger office spaces

Chennai: The IT-ITeS sector dominated GCC absorption with a 54 per cent share in FY 2025. However, the share has declined from 61 per cent a year earlier. Despite accounting for only 8 per cent of the total number of GCCs in the city, the share of healthcare and lifesciences in absorption increased from 4 per cent to 14 per cent during the same period

Mumbai: The city’s overall absorption increased by 52 per cent in FY 2025 over the previous year. The uptick was primarily driven by the growth in the GCC landscape as the share of GCCs in the city’s total absorption increased from 15 per cent to 26 per cent during the same period stated above

NCR: The share of Fortune 500 companies in the overall area absorbed by GCCs rose to 50 per cent in FY 2025 from 40 per cent a year ago. These companies leased larger office spaces in the region, which can be substantiated by the fact that the area transacted under large-sized deals increased drastically by 142 per cent in FY 2025

Pune: The IT-ITeS sector accounts for 61 per cent of the total number of GCCs in the city, the highest among other sectors. It was followed by BFSI at 16 per cent, engineering and manufacturing at 7 per cent, automobile at 5 per cent and healthcare and lifesciences at 3 per cent.