Chennai: Surpassing the dominance of the IT sector, Global Capability Centres (GCCs) have emerged as the primary driver of Chennai’s commercial real estate market in 2025. GCCs accounted for a 51% share of gross office space leasing, outstripping all other industries and offsetting a slowdown in demand in the IT and IT-enabled services (ITeS) sectors.According to data sourced by TOI from real estate intelligence firm Anarock Group, GCCs leased 4.3 million sqft of the total 8.4 million sqft gross leasing reported in the city last year. This trend in Chennai outpaced the national average, where GCCs contributed to 41% of gross office absorption across India, up from 36% in 2024.The office real estate absorption acts as a proxy for the sector’s expansion in recent years as data shows a steady upward trajectory. GCCs register steady growth with 2 million sq ft or 27% of 7.4 million sqft gross office leasing in 2023 to 3.29 million sqft or 41% of the 8.1 million sqft in 2024. The Chennai office market witnessed notable sectoral realignment in 2025, reflecting broader economic and industry dynamics, said Peush Jain, managing director of commercial leasing and advisory at Anarock group. “The IT and ITeS sector, traditionally the dominant force in office space leasing here, has experienced a continued moderation, while demand from GCCs has been on the rise,” said Jain.The surge in demand has led to a tightening of supply. While new office supply stood at 3.90 million sqft (a 72% growth) in 2025, net office absorption was significantly higher at 5.6 million sqft. This represents a 12% growth in absorption, against 10% average growth recorded across the country’s top seven cities. Chennai remains the only major city with single-digit vacancy rates, which declined from 9.2% to 8.8% in 2025. Average monthly rentals also saw a 5% yearly increase, touching nearly Rs 79 per sqft. “Current trends indicate that the Chennai office market will continue to show positive momentum in 2026, with GCC demand remaining strong. Data suggests that both new office supply and absorption may see anywhere between 10%-15% growth in 2026 compared to 2025,” Jain added. Beyond the metro, Coimbatore ranks among the top tier-2 cities for GCC expansion in India. While Chennai and Mumbai regions remain key data centre hubs in India, Coimbatore and Madurai are newly emerging DC hubs.
