Leasing For GCCs Rises 24% In FY25, Bengaluru Dominates With 65% Share In Office Absorption: Vestian Report

India’s office market continues its strong recovery and growth trajectory, led by the Global Capability Centres (GCCs) sector, as leasing activity surged 24% year-on-year in FY25, according to a recent market analysis by Vestian. The report reveals that Bengaluru remains the undisputed leader, accounting for a massive 65% of total office absorption by GCCs, reaffirming its status as India’s technology and innovation capital.

Strong Rebound In GCC Leasing Demand

Vestian’s data highlights that:

• GCC leasing volumes rose by 24% compared to FY24, driven by new market entrants and expansion by existing global firms.
• Total office leasing by GCCs across top Indian cities reached approximately 21.2 million sq ft in FY25, compared to 17.1 million sq ft in FY24.
• This growth reflects renewed confidence among multinational corporations in India’s talent pool, cost advantages, and strategic role in global business continuity planning.

Bengaluru’s Dominance In GCC Office Absorption

Bengaluru’s pre-eminence is attributed to:

• Established tech ecosystem with strong backward and forward linkages.
• Availability of Grade A office spaces with integrated campuses preferred by global firms.
• High-quality talent pipeline from top engineering and management institutions.

Key Trends Behind The GCC Leasing Surge

1. Shift To Capability Centres 2.0

Companies are transitioning their Indian centres from cost-arbitrage back offices to strategic capability hubs for product development, AI/ML, cybersecurity, and customer experience management.

2. Flight-To-Quality

Multinationals are prioritising future-ready office spaces with ESG compliance, integrated digital infrastructure, and employee wellness facilities.

3. Hybrid Models Reshaping Office Demand

While hybrid work remains popular, GCCs continue leasing large consolidated spaces to ensure collaboration, innovation, and client confidence.

4. Rising Focus On Tier 2 Cities

Vestian notes emerging interest in cities like Coimbatore, Indore, and Jaipur for smaller GCC footprints, driven by talent availability and lower operating costs.

Sector-Wise Breakdown Of GCC Expansion

Investment Outlook For GCC Real Estate In India

Vestian predicts:

• GCC leasing demand will continue rising at 15-18% CAGR over the next three years, supported by stable macroeconomic indicators and proactive government policies.
• Bengaluru, Hyderabad, and Pune will remain top three GCC destinations, with Hyderabad gaining ground due to rapid infrastructure upgrades and incentives.
• Green-certified buildings, energy-efficient campuses, and smart workspaces will dominate new leases as ESG and employee experience become core global priorities.

Why India Remains GCC’s Top Choice

Talent availability, cost competitiveness, policy stability, and digital infrastructure readiness remain India’s strongest pillars in attracting GCC investments. Key drivers include:

1. Skilled Workforce: India adds over 1.5 million STEM graduates annually, with strong English proficiency and adaptability.
2. Cost Efficiency: Operating costs remain 25-40% lower than developed markets, enabling companies to expand while optimising margins.
3. Policy Support: State IT policies, SEZ benefits, and ease of doing business reforms continue to incentivise GCC expansion.
4. Robust Infrastructure: Rapid upgrades in airports, metro connectivity, fibre networks, and Grade A commercial spaces enhance investor confidence.

Challenges And Mitigation Strategies

Despite positive trends, Vestian identifies potential challenges:

• Talent retention amid high attrition rates in certain tech and R&D verticals.
• Infrastructure bottlenecks in city peripheries with limited transport links.
• Regulatory clarity required for hybrid work compliance, especially for SEZ-based GCCs.

Companies are mitigating these risks by:

• Investing in employee upskilling and career development programs.
• Choosing integrated campuses with residential and lifestyle amenities to attract talent.
• Structuring flexible leasing models to balance hybrid working uncertainties.

Expert Commentary

Shrinivas Rao, CEO – Vestian India, noted:

“India’s GCC market has evolved from a back-office play to a strategic growth engine for global firms. Bengaluru continues to be the crown jewel, but tier 2 cities will increasingly attract distributed GCC footprints as companies diversify risk and tap regional talent pools.”

Future Forecast: GCC Leasing And India’s Economic Growth

Looking ahead, the Indian GCC sector is projected to:

• Reach $110-130 billion in value by 2030, up from $46 billion currently.
• Employ over 5 million professionals directly, driving consumption growth in urban markets.
• Contribute significantly to commercial real estate demand, infrastructure development, and ancillary services.

Vestian concludes that India remains irreplaceable in the global GCC strategy, with leasing growth in FY25 validating the country’s enduring competitiveness.

Conclusion

The 24% rise in GCC leasing during FY25, with Bengaluru accounting for nearly two-thirds of the office absorption, reaffirms India’s pivotal role in global business strategies. As the GCC model becomes a backbone for multinational operations, Indian cities are set to witness increased investments, job creation, and ecosystem development, further consolidating their status as global innovation and service hubs.

Disclaimer: This news article is intended for informational purposes about India’s commercial real estate and GCC sector trends. Readers are advised to seek professional consultation for investment or policy decisions in the real estate or global capability centre markets.