GCC Office Space Demand in India Up 24%

New Delhi, Jul 2 (PTI) Leasing of office spaces to set up Global Capability Centres (GCCs) increased by 24 per cent last fiscal to 31.8 million square feet across seven major cities, according to a report.

Data from real estate consultant Vestian showed that the leasing of office space to establish GCCs stood at 31.8 million (318 lakh) square feet in 2024-25 as against 25.6 million (256 lakh) square feet in the preceding year.

"Over the past couple of years, GCCs have been the primary growth driver of India's office market. This growth has been fueled by cost optimization strategies, a skilled talent pool, rapid infrastructure development, favourable government policies, ease of doing business, and a supportive business environment," Vestian said in a statement on Wednesday.

As per the Vestian's report, GCCs accounted for 42 per cent of the pan-India absorption in 2024-25, registering a marginal increase from 41 per cent a year earlier.

Shrinivas Rao, CEO of Vestian said, "GCCs contribute significantly to the office market in India, accounting for over 40 per cent of the absorption recorded in the past two years."

This share is expected to grow even further, fuelled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services, he added.

"India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem," Rao said.

Among cities, the leasing of office space for establishing GCCs stood maximum in Bengaluru at 12.43 million square feet last fiscal as against 8.34 million square feet in the preceding year.

In Mumbai, the absorption of office spaces by GCCs jumped to 3.68 million square feet in 2024-25 from 1.36 million square feet in the preceding year.

Real estate major DLF Ltd, Embassy Group, Prestige Group, RMZ Group, Tata Realty & Infrastructure Ltd and three office assets-backed REITs -- Mindspace Business Parks REIT, Brookfield India Real Estate Trust and Embassy Office Parks REIT--are the major players in Indian office market.