India is projected to see robust demand for office spaces in 2025, with Global Capability Centres (GCCs) expected to account for 35–40% of total office space absorption , according to a recent report by CBRE
The report underscores India’s growing role as a global hub for GCCs, driven by its vast skilled talent pool, cost advantages, and maturing ecosystem that supports complex and advanced business functions
GCCs Strengthen India's Position as a Global Hub
International companies are increasingly investing in India to establish sophisticated, multi-functional GCCs. These centres are no longer limited to back-office support but handle advanced functions such as product development, R&D, analytics, and AI-driven solutions
CBRE noted that in 2025, GCCs will continue to be a key driver of office space leasing, supported by the consolidation of existing operations and the entry of new players into the Indian market.
Steady Demand in First Half of 2025
According to the report, India’s office sector achieved its highest-ever leasing and supply in the first half of 2025 (January to June), with leasing activity touching 39 million sq. ft., reflecting a 3% year-on-year growth.
Office space demand was largely driven by expansion-focused leasing from GCCs, domestic corporates, flexible space operators, banking and financial services (BFSI) companies, and technology players.
CBRE highlighted that while established companies are setting up large, dedicated campuses in major Indian cities, new entrants are leveraging flexible spaces to enable quick, agile expansion. This trend is allowing firms to scale operations efficiently in response to evolving business requirements
Office space demand was largely driven by expansion-focused leasing from GCCs, domestic corporates, flexible space operators, banking and financial services (BFSI) companies, and technology players.
CBRE highlighted that while established companies are setting up large, dedicated campuses in major Indian cities, new entrants are leveraging flexible spaces to enable quick, agile expansion. This trend is allowing firms to scale operations efficiently in response to evolving business requirements
Technology and Diversified Sectors Fuel Demand
Technology remains the leading sector driving demand for GCC spaces in India, as companies prioritize innovation, artificial intelligence, and advanced digital solutions. Beyond technology, other sectors are also contributing significantly to GCC-driven office leasing, including Banking, Financial Services, and Insurance (BFSI); Engineering and Manufacturing (E&M); Semiconductors; Aerospace; Automotive; and Life Sciences. This diversified sectoral demand highlights the evolving role of GCCs in supporting complex, high-value functions across industries, reinforcing India’s position as a global hub for advanced business operations
Global Companies Deepen India Presence
U.S.-based companies continue to dominate the GCC landscape in India, but the success of existing operations is attracting growing interest from European and Asian firms, which are expanding their presence and setting up new centres.
Government support through targeted policies is also anticipated to boost leasing activity, especially in emerging markets, while existing hubs such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and the National Capital Region (NCR) continue to grow steadily
Government support through targeted policies is also anticipated to boost leasing activity, especially in emerging markets, while existing hubs such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and the National Capital Region (NCR) continue to grow steadily
Tier-II and Tier-III Cities Gain Traction
A key trend identified by CBRE is the decentralisation of GCC operations to tier-II and tier-III cities, driven by reverse migration and the quest for talent beyond traditional hubs.
The share of these smaller cities in total GCC space absorption is projected to rise from 7% in FY2024 to 15–20% by 2025, signalling a shift toward a more distributed GCC footprint across India.
The share of these smaller cities in total GCC space absorption is projected to rise from 7% in FY2024 to 15–20% by 2025, signalling a shift toward a more distributed GCC footprint across India.
Outlook for Second Half of 2025
Looking ahead, the demand for quality office spaces is expected to remain strong in the second half of 2025, as companies aim to consolidate and expand their operations.
With India firmly positioned as a preferred destination for GCC investments, supported by a strong talent ecosystem, cost advantages, and government incentives, the office space market is likely to remain a key beneficiary of this growth story
With India firmly positioned as a preferred destination for GCC investments, supported by a strong talent ecosystem, cost advantages, and government incentives, the office space market is likely to remain a key beneficiary of this growth story
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