India’s Office Market Booms as GCCs Drive Demand
3 May 2025 / 03 min read
India’s commercial real estate sector is experiencing a significant shift, driven by a surge in demand from Global Capability Centres (GCCs), according to a report by Realty+. The rapid growth of GCCs is reshaping office leasing patterns, with significant implications for the short-term and long-term future of India's office space market.
India’s commercial real estate sector is experiencing a significant shift, driven by a surge in demand from Global Capability Centres (GCCs), according to a report by Realty+. The rapid growth of GCCs is reshaping office leasing patterns, with significant implications for the short-term and long-term future of India’s office space market.
Between 2022 and the first half of 2024, GCCs leased an impressive 53 million square feet of office space in India, accounting for 36% of the country’s rental workspace, a report by ANSR said. This has taken the total occupied office space by GCCs to around 160.8 million square feet, or 32% of India’s total office stock.
The trend is expected to continue, with GCCs projected to occupy 42% of India’s rental workspace by 2026. This growth is driven by India’s strong talent pool, favorable business environment, and the country’s ability to adapt to changing global business needs.
Bengaluru, Hyderabad, and Chennai are the top three cities driving this demand, accounting for 75% of GCC leasing activity. Bengaluru leads with a dominant 40% share, followed by Hyderabad at 21% and Chennai at 14%. These cities offer a combination of infrastructure, talent, and connectivity that makes them attractive to GCCs.
Technology companies are the biggest drivers of demand, accounting for 47% of GCC leasing activity. Flexible space providers follow closely at 19%, and the BFSI (banking, financial services, and insurance) sector makes up 16% of the demand. The manufacturing sector also contributes 9% to the overall demand.
While traditional office hubs like Bengaluru’s Outer Ring Road and Hyderabad’s Gachibowli area remain popular, newer micro-markets are gaining traction. In Bengaluru, areas like Hebbal and Whitefield are emerging as hotspots, while in Pune, areas like Kharadi, Hinjewadi, and Baner are seeing increased demand. Other major markets, such as Delhi/NCR, Mumbai, and Pune, are also seeing increasing demand from GCCs.
Sustainability is also becoming a key priority, with over 75% of leasing in 2022 concentrated in pre-certified green buildings. This trend is expected to accelerate as corporate occupiers and developers prioritize sustainability in their decision-making processes.
The growth of GCCs in India is a testament to the country’s growing importance as a global business hub. As the demand for office space from GCCs continues to grow, it is likely to have a significant impact on the Indian economy, driving growth, creating jobs, and increasing India’s competitiveness in the global market.
The demand for office space from GCCs is expected to continue to drive growth in India’s commercial real estate sector, with significant implications for the country’s economy and business landscape. As the trend continues, it will be interesting to see how the market adapts to meet the changing needs of GCCs and other occupiers.
