India’s office space market has started 2025 on a strong note, with global capability centres (GCCs) and IT companies leading the charge. According to a recent real estate consultancy Knight Frank India report, office space transactions hit an all-time high of 28.2 million square feet in the first quarter (January–March), marking a 74% year-on-year increase.

GCCs emerged as the top occupiers, accounting for 44% of total transactions—translating to 12.4 million square feet. “Demand for GCCs continues to hit new highs as global perceptions of India as a long-term investment destination strengthen,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

The IT and IT-enabled services (ITeS) sector also made a notable comeback, contributing 5.5 million square feet or 19% of the total office space absorbed. The return to office and tapering of remote work policies have contributed to the increased demand. India’s cost-efficiency and talent pool offer a compelling value proposition for global occupiers. “The cost of establishing operations, including space and access to talent, amounts to about one-fifth of what it would cost elsewhere,” said Viral Desai, Senior Executive Director at Knight Frank.

Bengaluru emerged as the hotspot for GCC growth, accounting for nearly 65% of all GCC-related transactions. The city saw a remarkable 259% surge in office space deals, totalling 12.7 million square feet in Q1 alone. This underscores Bengaluru’s status as the country’s tech and innovation hub.

The report also highlighted that India’s office space market is relatively insulated from global tariff changes and is expected to remain resilient. “The office market faces minimal challenges, apart from constrained supply, and is well-positioned to maintain its momentum into 2025,” Baijal noted.

Knight Frank India projects the office space sector to expand by another 5–6% in 2025, targeting a total volume of 75–78 million square feet. As global firms continue to explore expansion in India amid rising AI adoption and operational cost advantages, the office real estate segment is set for steady growth.