India's Office Space Surge: GCCs Leading the Charge in 2025

As 2025 approaches, India is on the brink of substantial growth in its office space sector, with Global Capacity Centres (GCCs) expected to account for nearly 35-40% of the total demand. A recent CBRE report highlights India's strengthening position as a global focal point for these centres.

International firms are increasingly attracted to India due to its rich talent pool and competitive costs. The expanding GCCs in India are becoming more sophisticated, managing advanced functions. "In 2025, GCCs are projected to drive significant office space absorption," states CBRE.

The first half of 2025 witnessed robust leasing activity in India, driven by GCC expansions, domestic corporates, and flexible space operators. India's office market hit a record with 39 million sq. ft. leased, marking a 3% year-on-year increase. Established companies are building large campuses, while newcomers choose flexible spaces for rapid expansion and efficiency.

The tech sector remains a major driver for GCC space demand, focusing on innovation. Other sectors include BFSI, engineering, semiconductors, aerospace, automotive, and life sciences. U.S.-based companies have a strong presence, but European and Asian firms are showing increased interest, driven by successful operations and government support.

Additionally, the trend of decentralizing GCCs to tier-II and tier-III cities is accelerating, spurred by reverse migration. Smaller cities are projected to increase their share of GCC space absorption from 7% in FY2024 to 15-20% by 2025. Demand for prime office spaces is expected to remain high as companies aim to consolidate and expand their operations.

(With inputs from agencies.)