The office leasing landscape in India saw a significant rise in FY 2025, with leasing for Global Capability Centres (GCCs) witnessing a 24% year-on-year increase. Across seven major Indian cities, a total of 31.8 million square feet was leased by GCCs. Notably, Bengaluru led the charge, accounting for 65% of the total office absorption in these cities, a notable jump from 55% in the previous fiscal year. This surge underscores Bengaluru’s position as the preferred hub for GCCs in India, particularly in the thriving IT-ITeS and BFSI sectors.
Key Insights from the Report
1. Bengaluru Emerges as the Top Performer
- Leased Area: 31.8 million sq ft across seven cities
- Bengaluru’s Share: 65% of the total office absorption
- GCC Growth: A 24% increase in leasing for GCCs
- Bengaluru’s dominant position was further solidified with its 65% share in office absorption for GCCs, marking a 10% increase from last year.
2. Sector-Wise Breakdown
- IT-ITeS Sector: Continues to lead, though with a slight decline from 53% to 46%
- BFSI Sector: Saw a strong surge from 14% to 22%
- Healthcare and Life Sciences: Increased its share from 5% to 8%
- Engineering and Manufacturing: Dropped from 9% to 4%
This diversification is a clear indication that GCCs are branching out into more industries beyond IT, with BFSI and healthcare sectors gaining substantial ground.
3. Fortune 500 Companies Play a Pivotal Role
- Total Area Leased by Fortune 500 Firms: 13.5 million sq ft (a 25% increase from FY 2024)
- Share of Total GCC Leasing: 47% of the total GCC leasing in FY 2025
- Fortune 500 companies now occupy nearly half of the total leased office space by GCCs, further highlighting India’s growing stature as a global destination for such enterprises.
4. Growth in Key Cities
- Pune: IT-ITeS sector accounts for 61% of the city’s GCCs
- Mumbai: GCC leasing share grew from 15% to 26%, driven by a 52% increase in overall absorption
- NCR (National Capital Region): Fortune 500 companies accounted for 50% of GCC leasing, with a 142% surge in large-sized deals
- Hyderabad: GCCs contributed 46% of total absorption, although large deal absorption declined by 5%
These cities are increasingly becoming key players in India’s office leasing market, attracting more global firms looking to expand their operations.
Key Takeaways Summary Table
| Key Metric | FY 2025 | FY 2024 | Change |
|---|---|---|---|
| Total Office Leasing for GCCs | 31.8 million sq ft | 25.6 million sq ft | +24% |
| Bengaluru’s Share of GCC Leasing | 65% | 55% | +10% |
| Fortune 500 Leasing | 13.5 million sq ft | 10.9 million sq ft | +25% |
| IT-ITeS Sector Share | 46% | 53% | -7% |
| BFSI Sector Share | 22% | 14% | +8% |
Official Quotes
Shrinivas Rao, CEO, Vestian:
“The demand from GCCs for Grade A office spaces in India remains robust, with increasing interest from sectors like BFSI, healthcare, and consulting services. As companies continue to expand, we anticipate further growth in this sector.”
Karan Chopra, Chairman & Co-CEO, Table Space:
“Within the GCC leasing segment, there is a clear preference for managed workspace solutions. The ongoing trend towards flexible office spaces is reflective of the growing demand for dynamic and adaptable work environments.”
FAQ Section
Q1: What is the main reason behind Bengaluru’s dominant share in office leasing for GCCs?
- Bengaluru’s established position as a hub for the IT-ITeS sector, coupled with its growing appeal for other industries like BFSI, has contributed to its dominance in the GCC office leasing market.
Q2: Which sectors are leading the growth in GCC leasing?
- The IT-ITeS and BFSI sectors are leading the growth, with the latter seeing a significant rise in demand for office space.
Q3: How much of the total office leasing was accounted for by Fortune 500 companies?
- Fortune 500 companies accounted for 47% of the total office leasing by GCCs in FY 2025.
Q4: Which city experienced the highest increase in GCC office leasing?
- Bengaluru experienced the highest increase, with GCCs accounting for 65% of the city’s total office absorption in FY 2025.
Q5: How has the office leasing trend evolved in Hyderabad?
- Hyderabad saw a steady contribution from GCCs, accounting for 46% of total absorption, but the area leased under large deals declined by 5%, indicating a more cautious approach by GCCs in the city.