Global Capability Centres (GCCs) drove significant growth in India’s office market in 2025, representing 45% of total absorption, up from 41% in 2024. A report by Vestian revealed that GCC-led absorption reached 34.9 million square feet, marking a 20% year-on-year increase. The strong demand from GCCs, coupled with favorable policies and H1-B visa restrictions, boosted pan-India office absorption to a record high of 78.2 million sq ft in 2025.
Despite global economic uncertainties, total absorption grew by 11% year-on-year, showcasing the resilience of India’s office market. The report highlighted that office absorption surpassed new supply significantly in 2025, leading to a notable drop in the pan-India vacancy rate from 13.9% in 2024 to 10.8% in 2025, a decline of 310 basis points.
The IT-ITeS sector remained the top leaser, constituting 38% of total absorption, followed by BFSI and flex spaces, each holding a 14% share. This trend reflects a growing diversification in office demand across sectors. More than half of the IT-ITeS occupiers leasing office space in 2025 were GCCs, with GCCs contributing nearly 60% of the total area transacted by the IT-ITeS sector in value terms.
Bengaluru led with a 32% share of the total area absorbed by GCCs in 2025, followed by Hyderabad with a 19% share. The report predicts a continued upward trajectory in office absorption, with expectations to reach 85-90 million sq ft by the end of 2026, largely driven by sustained GCC demand.
