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GCCs and IT Companies Drive Growth in India’s Office Space Market in Q1 2025

by Mich M.
04/04/2025
in Sourcing

India’s office space market saw a record-breaking 28.2 million square feet of transactions in the first quarter of 2025, reflecting a strong demand from Global Capability Centres (GCCs) and IT companies. This represents a 74% increase in transaction volumes compared to the same period last year, according to a report from Knight Frank.

GCCs emerged as the largest consumers of office space, accounting for 44% of the total transaction volume. The third-party IT services sector also contributed significantly, with a 19% share of the office market. This growth is attributed to India’s growing reputation as a long-term investment destination and its cost advantages, which make it an attractive location for global companies looking to set up operations.

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Bengaluru led the market, with 65% of the GCC transactions occurring in the city. The Bengaluru office market saw a remarkable 259% increase, with 12.7 million square feet of office space transacted.

The demand for office space is expected to continue into 2025, with a projected growth of 5-6%. As the trend of returning to office spaces gains momentum, the IT sector is likely to contribute further to this demand, driven by both the economic advantages of operating in India and the increasing use of AI and other technologies.

Knight Frank forecasts that the office space market will reach 75-78 million square feet in total transactions by the end of 2025.

Discover the latest in supply chain logistics news on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#GCCs #ITCompanies #IndiaOfficeMarket #Q12025 #OfficeSpaceGrowth #GlobalSourcing #BengaluruRealEstate #IndiaInvestment #CorporateExpansion #CommercialRealEstate

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