Business News | GCCs Drive India's Office Market to Historic Highs in 2025 as Absorption Hits 78.2 Million Sq Ft: Report
Get latest articles and stories on Business at LatestLY. India's office market achieved a landmark milestone in 2025, reaching an all-time high absorption of 78.2 million sq ft despite a backdrop of global macroeconomic uncertainties and geopolitical headwinds.
New Delhi [India], January 19 (ANI): India's office market achieved a landmark milestone in 2025, reaching an all-time high absorption of 78.2 million sq ft despite a backdrop of global macroeconomic uncertainties and geopolitical headwinds.
According to a report by Vestian, this 11% year-on-year growth was primarily propelled by Global Capability Centres (GCCs), which accounted for 45% of the total pan-India absorption. In absolute terms, GCC-led leasing reached 34.9 million sq ft, marking a 20% increase from the previous year.
"Strong demand from GCCs, supported by a favourable policy environment and restrictions on the H1-B visa, propelled pan-India office absorption to an all-time high of 78.2 Mn sq ft in 2025," the report stated.
The unprecedented demand triggered a corresponding surge in construction, with developers "accelerated construction activity across major markets" to meet the appetite for space. New completions rose by 8% to 55.5 million sq ft, the highest annual supply ever recorded in a single calendar year.
Despite this record supply, demand significantly outpaced new completions, leading to a sharp improvement in occupancy levels. The pan-India vacancy rate saw a notable decline of 310 basis points, dropping from 13.9% in 2024 to 10.8% in 2025. While most major cities saw improved vacancy levels, Pune was the lone outlier, experiencing a 4.6% increase in vacancy due to a massive 12 million sq ft of new supply added during the year.
Sectoral diversification also played a key role in the market's depth, though the IT-ITeS sector remained the dominant force with a 38% share of total absorption. This was followed by the BFSI and flex space sectors, which each contributed 14% to the leasing activity, noted the report.
Within the IT-ITeS segment, GCCs were particularly influential, contributing to "nearly 60% of the total area transacted by the IT-ITeS sector, reaffirming their central role in market expansion".
Geographically, Bengaluru led the GCC charge with a 32% share of the total GCC absorption, while the National Capital Region (NCR) witnessed a dramatic rise, with its GCC share jumping from 18% in 2024 to 45% in 2025.
Reflecting on the record-breaking year, Vestian's report noted that "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".
The firm highlighted that "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". Looking ahead, the momentum is expected to continue into 2026, with absorption projected to reach between 85-90 million sq ft as the share of GCCs in total leasing is anticipated to exceed 50%. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)