India’s Global Capability Centres (GCCs) leased a record 31.8 million sq ft of office space in FY2024–25—a 24% annual rise—even though the total number of transactions dropped slightly. The surge in large deals signals a strategic focus on consolidation, scale, and long-term operational growth. Bengaluru remained the top destination, with Fortune 500 companies driving most of the absorption.
Larger Spaces, Fewer Transactions
India’s Global Capability Centres are opting for larger, more consolidated office footprints. While the number of GCC leasing transactions declined by 4% to 305 in FY25, the volume of space leased in large deals (1 lakh sq ft or more) grew by 44%, rising from 15.8 million sq ft to 22.8 million sq ft. This points to a trend where companies are prioritising long-term scalability, cost-efficiency, and centralised operations over fragmented expansion.
India’s Continued Dominance in GCC Strategy
India remains the go-to market for global firms establishing or expanding their GCCs due to:
- Cost benefits
- Access to a highly skilled talent pool
- Business-friendly policies
- Rapid infrastructure improvements
As a result, GCCs contributed to 42% of all office leasing in India during FY25, up from 41% the previous year. The total GCC-related absorption increased to 31.8 million sq ft, representing a 24% year-over-year rise.
Bengaluru: The Unchallenged Leader
Bengaluru led the country in GCC leasing:
- 12.43 million sq ft leased by GCCs in FY25, up from 8.34 million the previous year
- 65% of all office leasing in Bengaluru was GCC-driven
- 47% of that space was leased by Fortune 500 companies, reaffirming the city’s stature as a global innovation hub
The city’s mature tech ecosystem and access to niche talent continue to attract large multinationals.
Conclusion: Focused Growth, Long-Term Bets
FY25 highlights a shift in strategy for global firms operating in India: fewer but larger, high-value leasing deals aimed at scalable, future-ready operations. With India offering the ideal blend of talent, infrastructure, and policy support, GCCs will continue to be a cornerstone of office space demand, primarily in key markets such as Bengaluru, Hyderabad, and Mumbai.
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