India’s GCC market surged in FY25, with leasing rising 24% to 31.8 million sq ft. Larger deals dominated, as Fortune 500 firms led the charge. Government initiatives now aim to push GCC expansion into Tier 2 cities, aligning policy, talent, and infrastructure to fuel the next phase of growth.
India’s position as a global hub for Global Capability Centres (GCCs) is rapidly solidifying, as demand for larger office spaces surged across the country in FY25, according to a new report by real estate consultancy Vestian.
The report revealed a 24% increase in GCC office leasing, bringing the total to 31.8 million sq ft across seven major Indian cities in FY25. While the number of transactions dropped by 4% to 305, the average deal size rose sharply, indicating a clear preference for larger, consolidated campuses. Notably, large transactions—defined as deals of over 1 lakh sq ft—jumped by 44%, from 15.8 million sq ft in FY24 to 22.8 million sq ft in FY25.
“India has emerged as the global epicentre for capability centres, especially in the fields of IT, finance, engineering, and services,” the report noted. GCCs accounted for 42% of India’s total office space absorption, up slightly from 41% in the previous year, signalling sustained and growing confidence among multinational firms in India’s infrastructure and talent pool.
Further breaking down the data, Fortune 500 companies accounted for 43% of the total GCC leasing activity, occupying 13.5 million sq ft—a 25% year-on-year rise. This trend reaffirms the country’s strategic appeal for enterprises seeking to consolidate global operations at scale.
As India cements its lead in this sector, the Indian government is stepping in to catalyse GCC expansion beyond Tier 1 cities. According to ET, the Centre is working on a comprehensive framework to extend GCC footprints into emerging cities, addressing gaps in infrastructure, policy, and talent development.
The effort includes the creation of an industry-led advisory panel, featuring representatives from Nasscom, Zinnov, ANSR, KPMG, and Invest India. This panel aims to drive collaboration between government and industry, particularly through industry-academia tie-ups that produce job-ready talent tailored to GCC needs.
The move aligns with recent budget announcements, which outlined structural reforms including bylaw enhancements, talent infrastructure improvements, and industry collaboration mechanisms aimed at decentralising GCC growth.
In summary, India’s flex and commercial office market is witnessing a strategic transformation—from fragmented leases to high-value, large-footprint deals, driven by the global GCC playbook. As public policy aligns with private expansion, the next frontier could well be India’s non-metros, positioning the country not just as a volume leader but a value powerhouse in global operations.
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