GCCs Dominate India’s Office Market, Set to Cross 100 Mn Sq Ft by 2027: JLL Report | AIM

India’s office market closed 2025 at an unprecedented high, defying global uncertainty and workspace contraction trends, with gross leasing touching a record 83.3 million sq ft—the highest ever recorded in the country, according to a JLL report.

The milestone was driven by aggressive expansion from global capability centres (GCCs), surging demand for flexible workspaces, and sustained business and headcount growth across major metros.

The full-year leasing volume exceeded the previous peak in 2024 by 7.8% year-on-year, while Q4 2025 alone set an all-time quarterly high at 26.8 million sq ft.

Market activity has been creating successive new peaks since 2023, reinforcing India’s position as a global business hub amid ongoing global macroeconomic volatility.

GCCs emerged as the dominant force in India’s office market, accounting for 37.7% of total gross leasing activity in 2025.

“GCCs established themselves as the dominant force in India’s office leasing market in 2025, capturing a commanding 37.7% share of gross leasing activity and achieving record-breaking 31 million square feet of space absorption—the highest annual figure ever recorded for this segment,” said Rahul Arora, head of office leasing and retail services, senior MD (Karnataka, Kerala), India, JLL.

He added that strong GCC expansion, coupled with robust occupancies and an active deal pipeline, could push India’s office leasing market to cross 100 million sq ft within the next two years, marking a transformational milestone.

Meanwhile, flexible workspace operators continued their rapid ascent, emerging as the largest occupier segment for the second consecutive quarter. In Q4 2025, flex captured a record 26.6% share of total leasing—its highest quarterly contribution ever.

Domestic occupier activity was largely driven by indigenous flex firms, which leased nearly 18 million sq ft during the year—their best performance to date.

In 2025, tech firms led leasing with a 25.8% share, followed by flex at 21.5%, while manufacturing/industrial and BFSI posted near-equal shares of 15.4% and 15.2%, respectively, according to the report.

Bengaluru remained the undisputed leader, commanding 29% of gross leasing in 2025, followed by Delhi-NCR (20.9%), and Mumbai and Hyderabad with near-identical shares of 14% each.

Bengaluru, Hyderabad, Pune, and Mumbai all recorded their highest annual leasing levels, highlighting broad-based demand across industries and geographies.

India’s net absorption surged to a record 57 million sq ft in 2025, up 14.1% from 2024.

In Q4 alone, net absorption reached 17.1 million sq ft, the highest quarterly figure of the year, led by Bengaluru, Hyderabad, and Delhi-NCR. As a result, overall vacancy fell to 15.2%, down 50 basis points quarter-on-quarter and the lowest level in five years, with several core markets now reporting single-digit vacancy levels.

“India’s office market delivered exceptional performance in 2025, achieving record-breaking gross leasing of 83.3 million sq. ft and net absorption of 57 million sq ft, with Q4 alone contributing 17.1 million sq ft in net absorption—the year’s highest quarterly figure,” said Samantak Das, chief economist and head of research and REIS, India, JLL.

He noted that the entry of nearly 200 new GCCs over the past two years, combined with tight occupancies and strong pipeline activity, signals sustained portfolio expansion ahead.

JLL expects India’s office market momentum to continue into 2026, supported by sustained GCC demand, manufacturing-led investments, and India’s deep talent pool. With GCCs now accounting for nearly 50% of all active space requirements, the country remains firmly positioned as the world’s preferred destination for large-scale, innovation-driven office expansion.