Office space demand from Global Capability Centres (GCCs) up 24% at 31.8 million square feet (sq. ft) in FY25: Vestian

Leasing of office spaces for Global Capability Centres (GCCs) surged by 24% YoY to 31.8 million square feet (sq. ft) across seven major Indian cities in FY25, according to a report by real estate consultant Vestian. GCCs accounted for 42% of the pan-India office space absorption in FY25, slightly up from 41% in the previous year. The growth has been driven by factors such as cost optimisation, a skilled talent pool, rapid infrastructure development, favourable government policies, and a supportive business environment. Chief Executive Officer of Vestian, Mr. Shrinivas Rao, noted that GCCs continue to be the primary growth driver in India’s office market, with contributions expected to increase as conglomerates across sectors like sectors like Information Technology (IT) and Information Technology Enabled Services (ITITeS), Banking, Financial Services, and Insurance (BFSI), healthcare and life sciences, engineering and manufacturing, and consulting services expand their footprint.

Among cities, Bengaluru led GCC office leasing with 12.43 million sq. ft in FY25, up from 8.34 million sq. ft a year earlier. Mumbai also witnessed significant growth in FY25, with GCC office space absorption rising to 3.68 million sq. ft from 1.36 million sq. ft in FY24. Key players in the Indian office market include real estate majors such as DLF Ltd, Embassy Group, Prestige Group, RMZ Group, and Tata Realty & Infrastructure Ltd, alongside office asset-backed Real Estate Investment Trust (REITs) including Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Embassy Office Parks REIT. He emphasised India’s compelling value proposition through its operational scalability, robust ecosystem, and skilled workforce.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.