GCCs Dominate India's Office Sector in 2025: A New Era of Business Confidence

India's Growing Attraction for Global Capability Centers

In a significant development for India's business landscape, Global Capability Centers (GCCs) emerged as the largest occupier in the Indian office sector in 2025. This shift underscores the growing attractiveness of India as a hub for research and development, and other related businesses.

Regional Highlights: Bengaluru, Hyderabad, and More

Bengaluru, the tech capital of India, led the way, accounting for 47% of GCC leasing activity, with Hyderabad following closely behind. The Delhi-National Capital Region (NCR), Pune, Chennai, and Mumbai also saw impressive growth, with each city crossing the 10 million square feet benchmark.

Flex Space and Third-Party IT Services on the Rise

Flexible workspaces and third-party IT services saw significant growth in 2025, accounting for 22% and 20% of total gross leasing, respectively. The demand for these services grew by 94% and 20% year-on-year, respectively.

Rental Appreciation Across Major Markets

The low availability of quality space led to rental appreciation in most major markets, with NCR and Hyderabad experiencing a 10% growth, followed by Mumbai and Bengaluru, both registering a 6% increase.

Relevance to the North East Region

While the primary focus of this report is on major cities like Bengaluru, Hyderabad, and Delhi-NCR, the growth in the office sector has broader implications for the North East region as well. With increasing demand for GCCs and flexible workspaces, there may be opportunities for cities like Guwahati, Imphal, or Agartala to attract similar investments, thereby boosting their economic growth.

Looking Forward

The exceptional performance of India's office market in 2025 suggests a sustained expansion of occupier demand over the past four years. This trend is expected to continue, further cementing India's position as a preferred destination for global and domestic enterprises.