Global Capability Centres (GCCs) in India demonstrated a clear shift towards larger office spaces in FY 2025, even as the total number of transactions saw a modest decline. According to a report by real estate services firm Vestian, GCC transactions fell by 4% year-on-year to 305, indicating a slight slowdown in the number of deals. However, total leased office space surged significantly, underscoring a strategic move by companies to consolidate and expand their operations
Surge in Large-Space Deals Reflects Long-Term Strategy
Large transactions—defined as deals over 1 lakh square feet—increased sharply by 44%, growing from 15.8 million sq ft in FY 2024 to 22.8 million sq ft in FY 2025. This indicates that GCCs are prioritizing long-term planning, operational consolidation, and sustainable growth by investing in larger campuses and integrated facilities
India's Strong Appeal for GCC Investments
India continues to cement its reputation as a top destination for global enterprises establishing or expanding GCCs. The country’s cost advantages, vast pool of skilled professionals, improving infrastructure, supportive government policies, and ease of doing business remain powerful drivers for this growth.
GCCs accounted for 42% of total office space absorption across India in FY 2025, a slight rise from 41% in FY 2024. In absolute terms, GCC office space absorption increased 24% year-on-year, reaching 31.8 million sq ft. This reflects steady confidence among global companies in India’s ability to deliver on large-scale, complex operations
GCCs accounted for 42% of total office space absorption across India in FY 2025, a slight rise from 41% in FY 2024. In absolute terms, GCC office space absorption increased 24% year-on-year, reaching 31.8 million sq ft. This reflects steady confidence among global companies in India’s ability to deliver on large-scale, complex operations
Fortune 500 Companies Fuel Growth
Fortune 500 companies have played a key role in boosting India’s GCC sector. These companies leased 13.5 million sq ft—making up 43% of all GCC space absorbed in FY 2025. This represents a 25% year-on-year increase, highlighting India’s growing importance as a preferred hub for multinational corporations seeking to centralize global operations and tap into specialized talent pools
Industry Trends and Growth Drivers
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 increasing presence of large conglomerates across industries reflects a maturing GCC market that is moving beyond traditional IT services to encompass a wider range of strategic, high-value functions.
“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 increasing presence of large conglomerates across industries reflects a maturing GCC market that is moving beyond traditional IT services to encompass a wider range of strategic, high-value functions.
Bengaluru Maintains Leadership as Top GCC Hub
Bengaluru continued to dominate as India’s top GCC destination. The city accounted for 65% of all its office space absorption being taken up by GCCs in FY 2025—up significantly from 55% the previous year. Nearly half (47%) of this space was leased by Fortune 500 companies, reaffirming Bengaluru’s status as India’s premier GCC hub and a critical node in global business service delivery
Conclusion
The FY 2025 data reflects the evolving priorities of global companies operating in India, with a clear move toward larger, more consolidated campuses that support integrated and efficient operations. With strong fundamentals, a skilled workforce, and an improving business ecosystem, India is well-positioned to maintain its leadership in the global GCC landscape.
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