GCCs: The Unsung Heroes of India's Commercial Realty Boom
24 MAY, 2025 / 03 min read
In an otherwise sluggish property market, one sector seems to be bucking the trend: commercial realty. And the unsung heroes, or so it appears, behind this boom are Global Capability Centres (GCCs). These centres have not only triggered a surge in demand for office space but have also set off a multiplier effect, spinning jobs and spurring intermediate industries such as cement and steel.
According to a report by the ANAROCK group, GCCs rented about 8.35 million sq ft of commercial space in Q1 2025 alone, accounting for 37% of all office space leasing in India. This demand has led to a significant increase in commercial rental rates across top cities. Mumbai, the costliest region, has seen rental rates rise to Rs 168 per sq ft per month, with Bandra Kurla Complex, Lower Parel, and Andheri East emerging as the most sought-after locations.
Delhi-NCR, the second costliest region, has witnessed a 17% increase in commercial rental rates, reaching Rs 110 per sq ft per month. Bengaluru, the hub of India's startup industry, has seen rental rates rise to Rs 95 per sq ft per month. Hyderabad, with a 9.9% annual increase, has emerged as a major contender for Bengaluru in attracting GCCs. Pune and Chennai are also witnessing significant growth, with rental rates standing at Rs 80 and Rs 72 per sq ft per month, respectively.
The numbers are telling. India's office transaction volumes reached a record 6.68 million square meters (7.19 million sq ft) in 2024, driven by robust demand from GCCs, multinational occupiers, and third-party IT service providers. According to Knight Frank, India's share of Asia-Pacific's office leasing volumes has risen to 47%, a testament to the country's robust fundamentals and growing appeal as a strategic hub for global corporations.
The benefits of this GCC-driven boom extend beyond the commercial realty sector. With GCCs expected to reach 1800 units by the end of this year, employing 21 lakh professionals, the attendant multiplier benefits will be significant. Jobs will be created, and industries such as cement and steel will see a surge in demand. The growth of GCCs will also lead to increased investment in infrastructure, technology, and talent development, further fueling India's economic growth.
As Shishir Baijal, Chairman and Managing Director of Knight Frank India, notes, "India's real estate sector stands well-positioned to play a pivotal role in the regional growth narrative." With GCCs leading the charge, India's commercial realty sector is poised for continued growth, driving economic development and job creation in the process.
The growth of GCCs in India is not limited to a few cities. Bengaluru, Hyderabad, Mumbai, and Delhi-NCR are emerging as major hubs, with each city offering unique advantages. Bengaluru, with its vibrant startup ecosystem, is home to 30% of India's GCCs. Hyderabad, with its favorable business environment and talented workforce, is emerging as a major contender, with its share of GCCs increasing to 19% in 2025.
GCCs have been the unsung heroes of India's commercial realty boom, triggering a surge in demand for office space and setting off a multiplier effect that will have far-reaching benefits for the economy. As the sector continues to grow, it's clear that GCCs will play a pivotal role in shaping India's economic future. With their growth, we can expect increased investment, job creation, and economic development, cementing India's position as a global hub for business and innovation.
