Global Capacity Centres to drive 35-40% of India's office space absorption in 2025: CBRE
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.
Live Events
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
30 minutes ago
- Time of India
Textiles exporters face fresh trade uncertainty amid Trump's latest announcements
NEW DELHI: US President 's latest tariff announcements have resulted in fresh uncertainty, with buyers expected to go slow on new orders. While textiles exporters seem to have got an advantage over Bangladesh, which has been slapped with 35% duty by Trump, industry is keeping close tabs on India's bilateral trade deal with the US as the American president has claimed the agreement with Vietnam allows him to impose a 20% tariff, although there may be product-specific concessions. Tired of too many ads? go ad free now In any case, the final word is not out on where tariffs settle in the coming weeks, with countries, including Bangladesh, once again rushing to Washington to rebalance the equations. "We need to watch how tariffs move. Buyers are a little confused at the moment," said V Elangovan, managing director of Tirupur-based SNQS International. What is adding to the complications is China. "Retailers have to fill their shelves. Last week, our merchandisers were in Shanghai, we could not compete because the Chinese were quoting better prices this year than last year. It is not clear how they can do so when the tariff for them is higher. We need more hand-holding from govt," he added. Govt and industry has been pushing for zero duty for garments and home textiles, where Indian products are competitive, although it is unlikely even if a trade deal is worked out as the Trump administration has refused to remove the 10% baseline tariff applicable on all countries. At 10%, Indian exporters are seen to be better off than rivals, provided subsidies are not doled out to Chinese manufacturers. In natural garments, where India has traditional strength, the cost disadvantage is relatively small, 3-4%. However, in synthetic garments, the gap widens to 10-11% due to higher production costs, Apparel Export Promotion Council (AEPC) said. "India, even with the existing reciprocal tariff rate (26% announced in April), will gain in export competitiveness vis-a-vis major garment exporting competing countries. Tired of too many ads? go ad free now Besides, we are quite hopeful of India striking a favourable trade deal which will further improve the competitiveness of India's apparel exports in all important US market... even a moderate reduction in the reciprocal tariff to around 15% could significantly improve our competitiveness across both natural and synthetic garment categories, thereby opening infinite export possibilities for India amid shifting global sourcing trends," said AEPC CEO Mithileshwar Thakur. With current tariff levels - India at 26%, Vietnam at 20%, and Bangladesh at 35% - India is seen to be competitive against Bangladesh in natural garments but faces pressure in the synthetics segment. "It is looking good for us and a trade deal will help," said K M Subramani, president of Tirupur Exporters' Association. The big question is the ability of Indian garment makers to manufacture on a scale, especially given their reluctance to invest in capacity addition.
&w=3840&q=100)
India.com
33 minutes ago
- India.com
Dollar Dominance, Trade Risks & Delhi's Balancing Act – Why Trump's BRICS Threats Matter For India
New Delhi: At a time when India inches closer to finalising a trade deal with the United States, a thunderclap from Washington has cast shadows over the celebration. US President Donald Trump's blunt message, posted publicly this week, warned that any country aligning with what he described as BRICS' 'anti-American policies' would face an additional 10% tariff without exceptions. As one of the founding members of BRICS, India finds itself at the centre of this growing storm. The recently concluded Rio de Janeiro summit of the bloc had laid out an ambitious declaration. There was no mention of the United States, but it still sent ripples through Washington. The BRICS statement challenged unilateral economic measures, defended multilateralism, voiced concern over tariffs that disrupt global trade and pushed for changes to global governance. These words appear to have stung. What followed was Trump's retaliation. On his Truth Social platform, he wrote that siding with BRICS' economic vision would come at a cost. The timing could not have been more crucial. He is expected to begin announcing trade deals from Monday, and India is among the countries on the list. In Delhi, this new tension is being watched with a mix of caution and calculation. Trade experts in the capital believe the core of Trump's anger lies deeper within the BRICS push for currency alternatives. For years, Russia and China have spoken of a new financial system to bypass the dollar. In 2022, Russia even floated a proposal for a BRICS reserve currency. Many Indian analysts suspect this is what triggered Trump's fury. The dollar remains Washington's most powerful economic weapon. The United States used it in 2012 to isolate Iran and again in 2022 against Russia. Any attempt to weaken its grip invites blowback. Despite its lack of political cohesion, BRICS still threatens that power by raising the idea of currency diversification. Indian economists see the bigger picture. The call for a common BRICS currency faces hurdles. Political will is scattered. China's dominance in the bloc sparks unease among other members. But the conversations alone unsettle Washington. That is why even vague references to multilateral financial systems draw fire. Meanwhile, India, experts are of the view, must walk a fine line. It is preparing for what is being described as a 'mini trade deal' with the United States. Reports suggest Delhi has already agreed to a baseline 10% tariff, but higher rates – up to 26% – remain on the table. Agriculture and dairy continue to be sticking points. At the same time, India cannot ignore its standing in BRICS. It shares that space with strategic rivals like China but also long-standing defence and energy partners like Russia. The bloc includes emerging economies looking for new trade paths. Turning away completely would be costly. Domestic industry lobbies in India are growing nervous. Sectors like textiles, pharma and information technology could suffer if Trump hikes tariffs further. Executives fear the fallout of a new wave of American protectionism. What adds to the anxiety is the unpredictability. Trump has changed course before. His sudden termination of a long-standing free trade pact with Vietnam has become a cautionary tale. Despite the tensions, some foreign policy voices in Delhi urge calm. They argue that BRICS has always been an idea more than an institution. Its members rarely share political agendas or geographical interests. But that has not stopped it from becoming a target. Others believe Trump's aggressive approach may backfire. His posture could push India to double down on groups such as BRICS and the Global South. But that path brings its own dilemmas, especially with China pulling the strings in many of these platforms. At the heart of it all, the challenge remains the same – can India navigate between its old allies and emerging coalitions without inviting punishment from either? With Trump's new tariffs looming, the question is no longer hypothetical. The countdown has begun.
India Today
an hour ago
- India Today
No place for double standards on terrorism: PM Modi's strong message in Brazil
India and Brazil strongly oppose terrorism and those who support it, Prime Minister Narendra Modi said on Tuesday while asserting that there is no place for double standards on terrorism, in a veiled reference to Pakistan and its all-weather ally China."Our thinking on the fight against terrorism is aligned - zero-tolerance and zero-double standards," PM Modi said during a joint press statement with Brazilian President Luiz Incio Lula da Silva after their delegation-level and Brazil strongly oppose terrorism and those who support it, the prime minister said, without naming any country. In the past, India has described Pakistan as the "global epicentre of terrorism." "There is no place for double standards on terrorism," he said, in a veiled reference to China, which is an all-weather ally of Pakistan. PM Modi thanked President Lula for its solidarity and support in the aftermath of the Pahalgam terrorist attack in the meeting, the two leaders held extensive discussions on multifaceted ties, including trade and investment, defence and security, health and pharmaceuticals, space, renewable energy, food and energy security, infrastructure development, digital public infrastructure, culture and people-to-people ties, Ministry of External Affairs Spokesperson Randhir Jaiswal explored avenues for collaboration in the new areas of critical minerals, new and emerging technologies, AI & supercomputers, digital collaboration & mobility, he said, adding that they set a bilateral trade target of USD 20 billion over the next five the talks, the two sides inked agreements to bolster cooperation in several Modi, who arrived here for a State Visit after attending the BRICS summit in Rio de Janeiro, said his trip to Brazil will add momentum to the bilateral PM Modi received a grand ceremonial welcome featuring a unique 114-horse parade at the Alvorada Palace in Brasilia. He also witnessed an Indian classical bhajan performance during his reception.- EndsTune InMust Watch
