GCCs drive office absorption space in Bengaluru for Q1: CBRE report
Bengaluru took 40% share of GCC leasing in the first quarter of 2025—the highest among the top nine cities in India.
Bengaluru recorded the highest office space leasing for the first three months of the year, primarily driven by global capability centres (GCC), according to a report.
Real estate consulting firm CBRE South Asia, in its report ‘CBRE India Office Figures Q1 2025', said office space leasing in Bengaluru stood at 4.8 million square feet—the highest across all nine key cities in India. Bengaluru recorded a 40% share in GCC leasing during the January-March 2025 period, followed by Mumbai, Delhi, Hyderabad, Chennai, Kolkata, Kochi, Ahmedabad, and Pune (not necessarily in that order).
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During January-March 2025, key sectors that drove absorption included technology (33%), engineering and manufacturing (24%), and BFSI (18%). On a pan-India basis, the office sector recorded a gross absorption of 18 million sq ft in Q1, reflecting a 5% year-over-year (YoY) growth. Bengaluru, Delhi-NCR, and Mumbai collectively accounted for approximately 64% of the total leasing activity.
BFSI firms recorded over 100% YoY growth in office leasing in the January-March 2025 quarter, accounting for a 26% share of total office leasing. GCCs accounted for 57% of the BFSI leasing in the quarter. American banks (48%), followed by domestic banks (31%), dominated BFSI leasing. Moreover, American BFSI firms contributed to 70% of the GCC leasing within the BFSI sector. This growth is significantly driven by Mumbai and Delhi, which together accounted for 60% of overall BFSI leasing in the quarter.
Other than the BFSI sector, the technology sector maintained a steady 24% share, while flexible space operators contributed 12%. Engineering and manufacturing firms held an 11% share, followed by research, consulting and analytics companies at 8%, and life sciences firms at 5% in the January-March 2025 period.
GCCs office leasing in Q1 2025 accounted for 45% of quarterly leasing at 8 million sq ft, registering 66% YoY growth. Bengaluru dominated GCC leasing, followed by Delhi at 24%, Chennai at 14%, Hyderabad at 10%, while Mumbai and Pune accounted for 6% and 5%, respectively.
On the growing demand, Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE, said, “A key factor shaping this momentum is the growing presence of Global Capability Centers (GCCs). As multinational firms consolidate, their expansion, alongside the continued rise of BFSI, technology, and emerging sectors, reinforces India's position as a global business hub. With strategic investments and a maturing office landscape, the sector is poised for long-term resilience and evolution."
Edited by Kanishk Singh
