Global companies choose bigger offices in India, even as number of deals fall: Report

New Delhi: In FY 2025, Global Capability Centres (GCCs) in India showed a clear preference for larger office spaces despite a slight decline in the number of overall transactions.

The number of GCC transactions fell by 4 per cent to 305, but the total leased office area grew significantly according to a report by real estate services firm Vestian.

Large transactions -- defined as deals above 1 lakh square feet -- increased by 44 per cent, rising from 15.8 million sq ft in FY 2024 to 22.8 million sq ft in FY 2025. This trend suggests that GCCs are focusing on long-term growth and consolidating their operations into larger spaces.

India continues to be a preferred destination for global enterprises due to its cost advantages, skilled workforce, improving infrastructure, supportive government policies, and ease of doing business.

In FY 2025, GCCs accounted for 42 per cent of the total office space absorbed across the country, up slightly from 41 per cent a year earlier. In terms of value, GCC absorption rose by 24 per cent year-on-year to reach 31.8 million sq ft.

Fortune 500 companies played a key role in this growth, leasing 13.5 million sq ft -- which made up 43 per cent of the total area absorbed by GCCs.

This marks a 25 per cent increase over the previous year and highlights India's growing importance as a hub for multinational companies establishing or expanding their global capability centers.

Shrinivas Rao, FRICS, CEO, Vestian said, "This share is expected to grow even further fueled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services. India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem."

City-wise, Bengaluru remained the top destination for GCCs, accounting for 65 per cent of the city's total office absorption -- up from 55 per cent last year. Nearly half (47 per cent) of this space was taken by Fortune 500 companies, reaffirming Bengaluru's status as a global GCC hub.