Global Capability Centres (GCCs) played a key role in driving India’s commercial office real estate market in 2025, accounting for around 45 percent of the total office space absorption during the year, according to a recent industry report. Leasing activity by GCCs reached nearly 35 million square feet, reflecting a strong year-on-year increase and highlighting India’s growing importance as a global hub for offshore operations.
Overall office absorption across major Indian cities touched approximately 78 million square feet in 2025, marking a healthy growth compared to the previous year despite global economic uncertainties. The steady demand from GCCs, along with sustained leasing by domestic and multinational firms, helped the office market maintain momentum. Factors such as cost competitiveness, availability of skilled talent, and a supportive business environment continued to make India an attractive destination for global enterprises setting up or expanding their capability centres.
On the supply side, new office completions also remained strong, with fresh additions exceeding 55 million square feet during the year. Although supply growth was robust, demand outpaced new additions, leading to an improvement in overall market fundamentals. As a result, the pan-India office vacancy rate declined significantly, moving to nearly 11 percent by the end of 2025 from close to 14 percent a year earlier. Most major markets witnessed a reduction in vacant space, indicating healthier occupancy levels.
From a sectoral perspective, the IT and IT-enabled services segment continued to dominate office leasing activity, contributing the largest share of absorption. GCCs formed a major part of this demand, accounting for a substantial portion of space taken up by technology-driven occupiers. Other sectors such as banking, financial services and insurance, as well as flexible workspace operators, also recorded steady leasing activity and supported overall absorption.
City-wise trends showed Bengaluru retaining its leadership position, driven by strong GCC demand and sustained interest from technology companies. Hyderabad and the National Capital Region also reported increased GCC-led leasing, reinforcing their status as prominent office markets. Pune witnessed notable supply additions, which led to relatively higher vacancy levels compared to some other cities.
Looking ahead, office leasing activity is expected to remain resilient, with total absorption projected to increase further in 2026. GCCs are likely to continue playing a dominant role, supported by ongoing expansion plans across technology, financial services, engineering, and healthcare sectors.
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