GCC-driven office space demand in India rises 8 pc in Jan-Sep: Report

Bengaluru, Sep 25 (IANS) Global capability centre (GCC)-driven demand of office space in India rose 8 per cent in the first nine months this year, reaching 50.9 million square feet, a report showed on Thursday.

While Bengaluru continued to drive overall transaction volumes in the third quarter, Pune, Mumbai and Chennai, particularly witnessed high demand traction.

The three cities cumulatively accounted for more than half of the quarterly Grade A office space uptake. Notably, each of the three cities saw an annual demand growth of at least 40 per cent in Q3 2025, according to the report by Colliers.

Bengaluru retained its dominance with 14 million sq. ft. of leasing and 27 per cent share in the overall India office space demand.

“India’s office market continues to demonstrate resilience, crossing the 50 million square feet benchmark in the first nine months of the year, despite ongoing external volatilities and trade frictions,” said Arpit Mehrotra, Managing Director, Office services, India, Colliers.

This steady momentum has been fuelled by a surge in space uptake by GCCs and continued traction in leasing activity from domestic firms.

GCCs have already leased close to 20 million sq ft in 2025 across the top seven cities, contributing around 40 per cent of the overall office space demand.

“Going forward, although occupiers are likely to carefully evaluate evolving scenarios, global technology firms will continue to bolster Grade A space uptake and play a pivotal role in driving the office space demand close to 70 million sq ft by the end of the year,” Mehrotra added.

New supply across the top seven office markets remained robust in Q3 2025, with 16.6 million square feet of completions, marking a 15 per cent annual increase.

Pune led the momentum with a nearly 4 times surge in quarterly completions at 4.6 million square feet, followed by Bengaluru and Delhi-NCR.

Conventional leasing in the first nine months of 2025 stood at 41.7 million sq ft, led primarily by the technology and BFSI sectors.

In terms of flex space activity, Bengaluru, along with Pune and Chennai, collectively accounted for nearly two-thirds of the flex space uptake in Q3 2025.

“Overall, the preference for agile workplace strategies and flex space adoption continues to be on the upswing across India and can potentially account for one-fifth of the overall demand in 2025,” said Vimal Nadar, National Director and Head of Research, Colliers India.

—IANS

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