Global Capability Centres (GCCs) in India are increasingly opting for larger office spaces, even as the overall number of transactions witnessed a slight dip in FY 2025. According to a recent report by real estate services firm Vestian, the total number of GCC-related deals dropped by 4% year-on-year to 305. Despite this decline, there was a significant rise in the total area leased, signalling that companies are consolidating and expanding their operations in the country.
Big-Space Deals Reflect Long-Term Focus
Large office space deals—those exceeding 1 lakh square feet—witnessed a sharp 44% increase in FY 2025. The leased space in this category grew from 15.8 million sq ft in FY 2024 to 22.8 million sq ft this year. This trend shows that GCCs are focusing on long-term growth, operational consolidation, and building sustainable workspaces such as larger campuses and integrated facilities.
India Remains a Top Choice for GCCs
India continues to strengthen its position as a preferred destination for global companies setting up or expanding their GCC operations. Competitive costs, a large pool of skilled talent, improving infrastructure, supportive government policies, and ease of doing business are some of the key factors driving this growth.
In FY 2025, GCCs accounted for 42% of the total office space absorption across India, up slightly from 41% in FY 2024. In absolute terms, the GCC office space absorption rose 24% year-on-year to 31.8 million sq ft. This highlights the steady trust global companies place in India for handling complex, large-scale operations.
Fortune 500 Companies Drive GCC Growth
Fortune 500 firms played a major role in the growth of India’s GCC sector. These companies leased 13.5 million sq ft of office space in FY 2025, making up 43% of the total space absorbed by GCCs. This marks a 25% increase compared to the previous year, underlining India’s growing role as a global hub for centralised operations and specialised talent.
Broader Industry Participation Fuels Market Maturity
Shrinivas Rao, FRICS, CEO of Vestian, said:
“This share is expected to grow even further fueled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services. India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem.”
The growing presence of GCCs from industries beyond IT shows that the market is maturing, with companies now handling a wider range of strategic and high-value functions.
Bengaluru Leads as India’s Top GCC Hub
Bengaluru continues to be the leading destination for GCCs in India. The city accounted for 65% of all GCC-related office space absorption in FY 2025, up from 55% last year. Notably, nearly half (47%) of this space was leased by Fortune 500 companies, further cementing Bengaluru’s position as India’s top GCC hub and a key player in global business services.
The data reflects the changing priorities of global companies, with a clear shift towards larger, integrated campuses that support efficiency and growth. With its skilled workforce and improving business environment, India remains well-positioned as a global leader in the GCC space.
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