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Latest World News Update > Blog > Business > Global Capacity Centres to drive 35-40% of India’s office space absorption in 2025: CBRE – World News Network
Business

Global Capacity Centres to drive 35-40% of India’s office space absorption in 2025: CBRE – World News Network

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Last updated: July 7, 2025 12:00 am
worldnewsnetwork 3 weeks ago
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New Delhi [India], July 7 (ANI): India is expected to see strong demand for office spaces in 2025, with Global Capacity Centres (GCCs) projected to absorb 35-40 per cent of the total office space during the year, according to a recent report by CBRE.
The report highlighted that India is steadily strengthening its role as a global hub for GCCs. International companies are increasingly turning to India to set up advanced, multi-functional centres due to the country’s vast talent pool and cost advantages.
These centres are not only expanding but also becoming more sophisticated in terms of the functions they handle.
CBRE stated, “In 2025, GCCs are projected to drive approx. 35-40 per cent of total office space absorption, supported by the consolidation of existing operations and the entry of new players.”
The report mentioned that in the first half of 2025 (January to June), office space absorption remained steady, largely driven by expansion-focused leasing from GCCs, domestic corporates, flexible space operators, banking and financial services (BFSI) players, and technology-based companies.
As per the report data, India’s office sector has recorded its highest-ever leasing and supply in H1 2025, leasing touched 39 mn. sq. ft., up 3 per cent YoY.
It also added that while established companies are setting up large campuses in key Indian cities, new entrants are choosing flexible spaces for quick and agile expansion. This approach is helping companies to scale operations efficiently based on changing business needs.
Technology remains the primary sector leading the demand for GCC spaces, as companies continue to focus on innovation and advanced solutions. Other sectors expected to drive demand include BFSI, engineering and manufacturing (E&M), semiconductors, aerospace, automotive, and life sciences.
CBRE pointed out that U.S.-based companies continue to dominate India’s GCC landscape. However, the success of existing operations is also drawing increased interest from companies based in Europe and Asia, which are now expanding their presence in India.
Government support through targeted policies is expected to encourage further leasing activity in emerging markets, while existing hubs continue to see steady growth.
In addition, the decentralisation of GCCs to tier-II and tier-III cities is gaining momentum, driven by reverse migration trends. The share of these smaller cities in total GCC space absorption is projected to increase from 7 per cent in FY2024 to 15-20 per cent by 2025.
Looking at the second half of 2025, the demand for quality office spaces is expected to stay strong as more companies look to consolidate and grow their operations. (ANI)

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