By, Saumya | 20 January, 2026
India’s office real estate sector witnessed another year of strong performance in 2025, powered predominantly by the expansion of Global Capability Centres (GCCs), the multi-functional hubs of global companies. According to a recent report by Vestian Research, GCCs were responsible for approximately 45% of total office space absorption across India during the year, up from around 41% in 2024.
In absolute terms, GCCs leased nearly 34.9 million sq ft of office space in 2025, a roughly 20% increase from the previous year, highlighting persistent confidence among multinational corporations in India as a strategic location for operations spanning technology, analytics, research and development, and shared services.
GCCs as the Growth Engine
Global Capability Centres have rapidly transformed from cost-efficient service centers to critical hubs of innovation and enterprise in multinational strategies. Their growing appetite for high-quality office space has been instrumental in shaping India’s commercial real estate landscape.
The Vestian report noted that overall office space absorption across the country reached a record, approximately 78.2 million sq ft in 2025, even as global economic uncertainties and geopolitical headwinds tested corporate expansion plans. GCC demand played a foundational role in achieving this milestone.
This trend reflects broader shifts in how global firms view India: not merely as a back-end service destination but as a core part of global operations, especially in areas like digital transformation, AI, and data analytics. With tight talent markets elsewhere and attractive cost structures in India, GCCs are increasingly anchoring large, scalable office footprints here.
Bengaluru and Other Key Markets Lead
Bengaluru continued to emerge as the foremost beneficiary of this trend, capturing roughly 32% of overall GCC-led office absorption in 2025. The city’s deep talent pools, strong technology ecosystem, and established commercial corridors remain key attractors for multinational corporations. Hyderabad followed with about 19% share, while the National Capital Region (NCR) saw notable upticks in GCC activity as well.
The distribution of demand underscores India’s multi-city growth model while Bengaluru retains its dominance, Hyderabad, Chennai, and Delhi-NCR are rapidly strengthening their positions as release valves for large-scale corporate expansion. Other emerging markets such as Pune and Chennai have also recorded meaningful leasing activity, further diversifying India’s office market landscape.
Sectoral Dynamics and Office Market Health
The role of GCCs in driving absorption also intersects with other key trends. The IT-ITeS sector remained the largest contributor to overall office absorption in 2025, accounting for roughly 38% of total take-up, with more than half of this coming from GCCs. Meanwhile, other segments including BFSI and flexible workspace operators contributed to sustained demand, signaling that office usage is spreading across industries rather than being confined to just one sector.
At the same time, new office supply continued to rise, with completions reaching around 55.5 million sq ft in 2025, the highest annual addition on record. Despite this, vacancy rates declined meaningfully, dropping by more than three percentage points to below 11%, as absorption outpaced supply additions.
What This Means for the Future
Real estate consultants say the growing influence of GCCs is a healthy signal for India’s commercial property market. As global firms embed deeper roots in India and expand functions beyond traditional back-office roles, demand for high-quality, flexible office space is expected to continue rising. This could lead to further upward pressure on rents and sustained interest in newer commercial corridors.
Looking ahead, industry forecasts suggest that overall office leasing could climb even higher in 2026, with GCCs potentially accounting for more than half of total absorption as digital transformation and global operations strategies expand. For developers and landlords, catering to the specific needs of GCC occupiers from collaborative workspaces to sustainability features could unlock future growth opportunities.
Source: ET Realty
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