Global capability centres (GCCs) emerged as the dominant growth driver of India’s office market in 2025, accounting for 45 per cent of total absorption, up from 41 per cent in 2024.
Strong demand from global capability centres (GCCs), supported by a favourable policy environment and H1‑B visa restrictions, propelled pan‑India office absorption to an all‑time high of 78.2 million sq ft in 2025, real estate advisory firm Vestian has said.
GCCs emerged as the primary growth driver of India’s office market in 2025, accounting for 45 per cent of total absorption, up from 41 per cent in 2024. In absolute terms, GCC‑led absorption reached 34.9 million sq ft, registering a 20 per cent year‑on‑year increase.
Despite ongoing global macroeconomic uncertainties and geopolitical headwinds, total absorption recorded an 11 per cent year‑on‑year growth, reinforcing the resilience of India’s office market.
To meet rising demand, developers accelerated construction activity across major markets. Consequently, new completions increased by 8 per cent to 55.5 million sq ft, marking the highest annual supply ever recorded in a calendar year.
Office absorption continued to outpace new supply by a wide margin in 2025, leading to a notable improvement in occupancy levels. The pan‑India vacancy rate declined by 310 basis points, from 13.9 per cent in 2024 to 10.8 per cent in 2025.
“Despite global uncertainties, 2025 emerged as a landmark year for India’s office market, registering the highest‑ever absorption and new completions in a single calendar year. Sustained demand from GCCs, robust economic growth, and a growing preference for Grade A and green‑certified office spaces kept leasing activity strong across major cities,” says Shrinivas Rao, CEO, Vestian.
Vacancy levels improved across all major cities except Pune, where vacancies increased by 4.6 per cent due to significant supply additions of 12 million sq ft during the year. Across other markets, vacancy corrections ranged between 0.1 per cent and 5.9 per cent, reflecting healthy demand‑supply dynamics.
Technology Sector Leads Demand
The information technology and information technology‑enabled services (IT‑ITeS) sector continued to dominate leasing activity, accounting for 38 per cent of total absorption, followed by banking, financial services and insurance (BFSI) and flex spaces, each with a 14 per cent share. This trend highlights increasing sectoral diversification in office demand.
Notably, over half of IT‑ITeS occupiers leasing office space in 2025 were GCCs. In value terms, GCCs contributed to nearly 60 per cent of the total area transacted by the IT‑ITeS sector, reaffirming their central role in market expansion.
Bengaluru dominated with a 32 per cent share of the total area absorbed by GCCs in 2025, followed by Hyderabad with a 19 per cent share. The National Capital Region (NCR) witnessed a sharp rise in GCC activity, with the share of area absorbed increasing from 18 per cent in 2024 to 45 per cent in 2025, reinforcing its growing prominence as a global GCC destination.
Office absorption has demonstrated a consistent upward trajectory, increasing from 61 million sq ft in 2023 to 70 million sq ft in 2024, and reaching nearly 80 million sq ft in 2025. At the current pace, absorption is expected to rise further to 85-90 million sq ft by the end of 2026.
This growth is expected to be driven largely by sustained GCC demand. The share of GCCs in total absorption has expanded from 41 per cent in 2024 to 45 per cent in 2025 and is projected to exceed 50 per cent by 2026, supported by expanding adoption across BFSI, healthcare, engineering and R&D sectors, alongside technology‑led demand.