MNCs Double Down on Indian Offices, Even as Deals Shrink—Here is All You Need To Know

Global Capability Centres (GCCs) in India have displayed a clear preference for larger office spaces despite a slight decline in the number of overall transactions in the financial year 2024-25 (FY25).

GCC Transactions Reduced

The number of GCC transactions declined by 4% to 305, but the total leased office space grew significantly as per a report by Vestian, which is a real estate services firm.

Large transactions or transactions above 1 lakh square feet, rose by 44%, rising from 15.8 million square feet in FY24 to 22.8 million sq ft in FY25.

This trend is indicative of the fact that GCCs are concentrating on long-term growth and consolidating their operations into larger spaces.

Why Is India The Preferred Destination?

India is still the preferred destination for global enterprises for a number of factors like cost advantages, skilled workforce, improving infrastructure, supportive government policies, and ease of doing business.

Additionally, in the financial year 2024-25, GCCs accounted for 42% of the total office space absorbed across the country, up slightly from 41% a year earlier.

In terms of value absorption, GCC absorption has also increased by 24% annually to reach 31.8 million sq ft.

Bengaluru was ranked the top destination for GCCs, accounting for 65% of the city's total office absorption, up from 55% last year and nearly half of this space (47%) was occupied by Fortune 500 companies, reaffirming Bengaluru's status as a global GCC hub.

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