New Delhi, Jan 19 (IANS) Global Capability Centres (GCCs) emerged as the primary growth driver of India’s office market in 2025, accounting for 45 per cent of the total pan-India absorption, up from 41 per cent in 2024, a report showed on Monday.

In absolute terms, GCC-led absorption reached 34.9 million square feet, registering a 20 per cent year-on-year increase, said the Vestian report.

The report further stated that 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.

Despite ongoing global macroeconomic uncertainties and geopolitical headwinds, total absorption recorded an 11 per cent year-on-year growth, underscoring the resilience of India’s office market, the report mentioned.

Office absorption continued to outpace new supply by a wide margin in 2025, leading to a notable improvement in occupancy levels. The pan-India vacancy rate declined by 310 basis points, from 13.9 per cent in 2024 to 10.8 per cent in 2025.

IT–ITeS sector continued to dominate leasing activity, accounting for 38 per cent of the total absorption, followed by BFSI and flex spaces, each with 14 per cent share. This trend highlights increasing sectoral diversification in office demand, said the report.

Notably, over half of the IT–ITeS occupiers leasing office space in 2025 were GCCs.

In value terms, GCCs contributed to nearly 60 per cent of the total area transacted by the IT–ITeS sector, reaffirming their central role in market expansion, it added.

Bengaluru dominated with 32 per cent share of the total area absorbed by GCCs in 2025, followed by Hyderabad with 19 per cent share.

Office absorption has demonstrated a consistent upward trajectory and at the current pace, absorption is expected to rise further to 85-90 million sq ft by the end of 2026.

This growth is expected to be driven largely by sustained GCC demand, said the report.

—IANS

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