GCC Office Leasing Rises 24% in FY25; Bengaluru Leads with 65% Share

India’s commercial real estate market continues to witness a paradigm shift, with Global Capability Centres (GCCs) playing an increasingly dominant role. According to a recent report by Vestian, leasing for GCCs rises significantly in FY25, recording a 24% year-on-year increase. The total leasing volume by GCCs reached 31.8 million sq. ft. across seven major Indian cities, reaffirming India's strategic importance as a global business hub.

This upswing signals more than just square footage—it reflects India’s evolving role in global enterprise operations, with cities like Bengaluru, Pune, and Hyderabad becoming magnets for high-value corporate activity.

GCC Leasing Sees Robust Growth in FY25

The demand for quality office spaces by multinational firms has grown steadily, but the fiscal year 2025 marked a new high. The leasing for GCCs rises across top cities such as Bengaluru, Hyderabad, Pune, Chennai, and NCR, with enterprises showing a clear preference for Grade A workspaces equipped for modern business needs.

Out of the total 31.8 million sq. ft. leased by GCCs, Fortune 500 companies alone accounted for 13.5 million sq. ft.—a 25% rise from the previous year. This highlights India's attractiveness for global giants looking to establish or expand their offshore operations.

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Bengaluru Retains Its Lead as India’s GCC Powerhouse

Bengaluru emerged as the frontrunner in this growth story. The city captured 65% of all office absorption by GCCs in FY25, up from 55% the previous year. This commanding lead underscores Bengaluru’s position as the top destination for global tech and business process operations.

Its infrastructure, talent ecosystem, and availability of premium office spaces have made it an unbeatable contender for companies looking to establish scalable back-office and innovation centers.

City-Wise Breakdown of GCC Leasing Trends

Pune

Pune recorded impressive numbers, particularly in the IT-ITeS sector, which accounted for 61% of all GCCs in the city. BFSI came in second at 16%, followed by engineering, automotive, and healthcare. Pune’s strategic location, skilled workforce, and well-developed industrial ecosystem have made it a preferred choice for diversified sectors.

Chennai

While Chennai continued to be dominated by the IT sector, healthcare and life sciences witnessed a surge in GCC demand. Their share of absorption grew from 4% in FY24 to 14% in FY25, indicating growing interest from pharmaceutical and biotech firms in the city.

Mumbai

Mumbai saw a 52% year-on-year rise in total office absorption, largely driven by GCC growth. The share of GCCs in overall leasing increased from 15% to 26%, thanks to increased activity in BFSI and consulting services.

NCR (Delhi Region)

In NCR, Fortune 500 firms leased 50% of the total GCC-related office space. The area transacted under large-sized deals saw a significant 142% increase, reflecting the region’s rising stature among global enterprises seeking scale.

Hyderabad

Hyderabad secured the second-highest share in overall GCC absorption at 46%. However, a 5% decline in large-sized leasing deals indicated a slightly more cautious approach in terms of expansion scale.

IT-ITeS Dominates but Diversification is Evident

The leasing for GCCs rises largely on the back of sustained demand from the IT-ITeS sector, which accounted for 46% of total GCC leasing. However, this figure dropped from 53% the previous year, reflecting the emergence of other sectors.

The BFSI sector surged to 22%, up from 14%, thanks to strong interest from global banks, insurance firms, and fintech companies. Similarly, the healthcare and life sciences segment grew from 5% to 8%, underlining the growing appeal of India as a base for research, diagnostics, and pharma operations.

Engineering and manufacturing sectors witnessed a dip from 9% to 4%, while consulting services held steady at 6%.

Managed Workspaces Gain Popularity Among GCCs

As leasing for GCCs rises, so does the appetite for managed office spaces. Industry experts note a sharp uptick in demand for flexible, fully serviced office environments. These plug-and-play solutions are attractive to global companies looking to scale quickly without dealing with infrastructure hassles.

Karan Chopra, Co-CEO of Table Space, noted, “Demand from GCCs for Grade A office spaces in India remains strong. Within this segment, we are seeing a distinct preference for managed workspace solutions.” His observation reflects an ongoing trend toward agility and operational efficiency.

Fortune 500 Companies Drive Momentum

One of the standout trends this year has been the growing participation of Fortune 500 firms in India’s GCC expansion. Their 47% share in the overall leasing volume underlines a long-term commitment to the Indian market. With 13.5 million sq. ft. of leased space, these firms are choosing India not just for cost arbitrage, but for talent, innovation, and regional positioning.

This momentum has had a ripple effect across allied industries like facilities management, real estate investment, and infrastructure development, boosting economic activity.

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Outlook for FY26: Sustained Growth on the Horizon

Looking ahead, the trend of leasing for GCCs is likely to continue, driven by multiple factors—rising global interest in Indian talent, digital transformation, and sector diversification. Analysts predict that office space absorption by GCCs could cross 35 million sq. ft. in FY26 if current trends hold.

Moreover, cities beyond the top seven are starting to see interest, hinting at broader geographic expansion as connectivity and infrastructure improve.

Conclusion

The Indian commercial real estate landscape has entered a new growth phase, with GCCs playing a pivotal role. Leasing for GCCs rises not just in volume, but in value, with high-quality tenants opting for premium, managed, and scalable workspaces. Bengaluru remains the epicenter of this activity, but cities like Pune, Hyderabad, and Chennai are closing the gap with targeted sectoral growth.

As global companies look toward India as a strategic destination, the office market will continue to benefit from the steady inflow of capital, innovation, and employment opportunities. For developers, investors, and city planners, the writing is clear: India’s GCC story has just begun, and its impact will only grow stronger in the years ahead.

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