GCCs Drive Record Office Absorption in 2025 Amid Global Uncertainty: Vestian

New Delhi, January 19, 2026: Global Capability Centres (GCCs) emerged as the primary growth driver of India’s office market in 2025, accounting for 45 per cent of the total pan-India absorption, up from 41 per cent in 2024. In absolute terms, GCC-led absorption reached 34.9 million square feet (MSF), registering a 20 per cent year-on-year increase.

Strong demand from GCCs, supported by a favourable policy environment and restrictions on the H1-B visa, propelled pan-India office absorption to an all-time high of 78.2 MSF in 2025. Despite ongoing global macroeconomic uncertainties and geopolitical headwinds, total absorption recorded an 11 per cent year-on-year growth, underscoring the resilience of India’s office market.

To meet rising demand, developers accelerated construction activity across major markets. Consequently, new completions increased by 8 per cent to 55.5 MSF, marking the highest annual supply ever recorded in a calendar year. Vacancy Levels Improve Sharply

Office absorption continued to outpace new supply by a wide margin in 2025, leading to a notable improvement in occupancy levels. The pan-India vacancy rate declined by 310 basis points, from 13.9 per cent in 2024 to 10.8 per cent in 2025.

Vacancy levels improved across all major cities except Pune, where vacancies increased by 4.6 per cent due to significant supply additions of 12 Mn sq ft during the year. Across other markets, vacancy corrections ranged between 0.1 per cent and 5.9 per cent, reflecting healthy demand-supply dynamics.

Bengaluru dominated with 32 per cent share of the total area absorbed by GCCs in 2025, followed by Hyderabad with 19 per cent share. NCR witnessed a sharp rise in GCC activity, with the share of area absorbed by GCCs increasing from 18 per cent in 2024 to 45 per cent in 2025, reinforcing its growing prominence as a global GCC destination.

Continued Momentum Ahead

Office absorption has demonstrated a consistent upward trajectory, increasing from 61 MSF in 2023 to 70 MSF in 2024, and reaching nearly 80 MSF in 2025. At the current pace, absorption is expected to rise further to 85–90 MSF by the end of 2026.

This growth is expected to be driven largely by sustained GCC demand. The share of GCCs in total absorption has expanded from 41 per cent in 2024 to 45 per cent in 2025 and is projected to exceed 50 per cent by 2026, supported by expanding adoption across BFSI, healthcare, engineering, R&D sectors, alongside technology-led demand.