Global capability centres (GCCs) are set to occupy 40% of India’s total office space market this calendar year, recovering sharply from less than a 30% share in 2022, primarily due to sustained demand from technology firms. These centres are expected to lease 28 million sq ft this year, boosting total space absorption to nearly 100 million sq ft since 2021 across the top seven cities.
“GCCs continue to remain the cornerstone of India’s office market, powering its ongoing scale-up,” Colliers said in a report titled GCCs in India: Building the Future of Global Enterprises released at the RICS CRE conference in Bengaluru on Wednesday. “Capability centres in India are steadily evolving into innovation-driven, domain-specialised, and technologically integrated centres, and are likely to drive over 40% of India’s office space demand.”
Arpit Mehrotra, managing director of office services at Colliers India, said that over the next two years GCCs are likely to lease 60–65 million sq ft of Grade A space across the top seven cities, unlocking significant real estate opportunities and fuelling demand for high-quality spaces.
Also Read: GCCs at the heart of next generation energy transformation: KPMG report
Technology GCCs continue to dominate leasing activity, accounting for 37% of cumulative demand. However, leasing from this segment has plateaued, with other sectors scaling up.
Banking, financial services, and insurance (BFSI), and engineering and manufacturing companies recorded the sharpest expansion, with their office space take-up surging three to four times between 2021 and 2025.
BFSI and engineering & manufacturing GCCs are likely to contribute 40–50% of leasing in 2025, according to Colliers India. The BFSI sector’s share in GCC leasing rose to 27% in 2025 from 15% in 2021, supported by expansion in risk management, compliance, digital banking, and fintech.
Engineering & manufacturing occupiers increased their share to 17% from 11% in the same period, driven by R&D and product engineering. Healthcare and consulting GCCs have also expanded their footprint.
“GCCs will continue to anchor India’s office space demand, supporting the ongoing scale-up and diversification,” said Vimal Nadar, national director and head of research, Colliers India. “While technology firms continue to drive Grade A space uptake by GCCs, the demand is becoming broader, with BFSI and engineering & manufacturing together expected to contribute 40–50% of leasing.”
Among the top cities, Bengaluru and Hyderabad have established themselves as India’s leading GCC hubs, with more than 60 million sq ft of GCC leasing since 2021. Both cities cumulatively drove more than 60% of total GCC demand during 2021–2025.
Meanwhile, Chennai is estimated to witness a 5.3 times jump in GCC leasing in 2025 compared to 2021, the highest among all cities. Owing to affordable rentals, especially in the peripheral locations, Chennai continues to attract cost-sensitive occupiers.
Bengaluru retained its premier position as India’s GCC hub thanks to demand from tech companies as well as global engineering & manufacturing firms. Mumbai, on the other hand, is favoured by front-end BFSI firms, while Pune attracts top financial firms, particularly for support service operations.
In the east, Kolkata is preferred for technology and consulting GCCs seeking a presence in that region. However, leasing activity remains concentrated in select corridors.
The top 10 micro-markets accounted for nearly three-fourths of GCC demand since 2021. Southern cities dominate, with eight hubs located in Bengaluru, Hyderabad, and Chennai.
“The rebound in GCC leasing underscores India’s position as the global hub for capability centres,” said Juggy Marwaha, CEO, Prestige Group–Office. “We are seeing a decisive shift towards high-quality, innovation-led workspaces, and this momentum will only accelerate.”
Also Read: How India can leverage its new brain power
Looking ahead, leasing demand in India’s office market is projected to cross 60 million sq ft during 2026–2027, anchored by GCCs.
“Businesses are impacted by geopolitical situations, but businesses also thrive on excellence, talent, leadership, and cost arbitrage in stable and established markets,” said Sanjay Dutt, MD and CEO, Tata Realty and Infrastructure. “AI and quantum dependence and the right environment to incubate and contribute to change are also important factors. And all of this is India’s competitive edge.”
According to Colliers, GCCs’ preference for sustainable, high-quality, future-ready spaces will continue to drive demand, with flex portfolios and emerging Tier II city hubs adding to the growth story. Occupiers are also expected to prioritise sustainability, premium Grade A spaces, and flexible options for scalability. Tier II cities will also see increased activity due to cost advantages, infrastructure, and talent.
( Originally published on Sep 17, 2025 )
“GCCs continue to remain the cornerstone of India’s office market, powering its ongoing scale-up,” Colliers said in a report titled GCCs in India: Building the Future of Global Enterprises released at the RICS CRE conference in Bengaluru on Wednesday. “Capability centres in India are steadily evolving into innovation-driven, domain-specialised, and technologically integrated centres, and are likely to drive over 40% of India’s office space demand.”
Arpit Mehrotra, managing director of office services at Colliers India, said that over the next two years GCCs are likely to lease 60–65 million sq ft of Grade A space across the top seven cities, unlocking significant real estate opportunities and fuelling demand for high-quality spaces.
Also Read: GCCs at the heart of next generation energy transformation: KPMG report
Technology GCCs continue to dominate leasing activity, accounting for 37% of cumulative demand. However, leasing from this segment has plateaued, with other sectors scaling up.
Banking, financial services, and insurance (BFSI), and engineering and manufacturing companies recorded the sharpest expansion, with their office space take-up surging three to four times between 2021 and 2025.
BFSI and engineering & manufacturing GCCs are likely to contribute 40–50% of leasing in 2025, according to Colliers India. The BFSI sector’s share in GCC leasing rose to 27% in 2025 from 15% in 2021, supported by expansion in risk management, compliance, digital banking, and fintech.
Engineering & manufacturing occupiers increased their share to 17% from 11% in the same period, driven by R&D and product engineering. Healthcare and consulting GCCs have also expanded their footprint.
“GCCs will continue to anchor India’s office space demand, supporting the ongoing scale-up and diversification,” said Vimal Nadar, national director and head of research, Colliers India. “While technology firms continue to drive Grade A space uptake by GCCs, the demand is becoming broader, with BFSI and engineering & manufacturing together expected to contribute 40–50% of leasing.”
Among the top cities, Bengaluru and Hyderabad have established themselves as India’s leading GCC hubs, with more than 60 million sq ft of GCC leasing since 2021. Both cities cumulatively drove more than 60% of total GCC demand during 2021–2025.
Meanwhile, Chennai is estimated to witness a 5.3 times jump in GCC leasing in 2025 compared to 2021, the highest among all cities. Owing to affordable rentals, especially in the peripheral locations, Chennai continues to attract cost-sensitive occupiers.
Bengaluru retained its premier position as India’s GCC hub thanks to demand from tech companies as well as global engineering & manufacturing firms. Mumbai, on the other hand, is favoured by front-end BFSI firms, while Pune attracts top financial firms, particularly for support service operations.
In the east, Kolkata is preferred for technology and consulting GCCs seeking a presence in that region. However, leasing activity remains concentrated in select corridors.
The top 10 micro-markets accounted for nearly three-fourths of GCC demand since 2021. Southern cities dominate, with eight hubs located in Bengaluru, Hyderabad, and Chennai.
“The rebound in GCC leasing underscores India’s position as the global hub for capability centres,” said Juggy Marwaha, CEO, Prestige Group–Office. “We are seeing a decisive shift towards high-quality, innovation-led workspaces, and this momentum will only accelerate.”
Also Read: How India can leverage its new brain power
Looking ahead, leasing demand in India’s office market is projected to cross 60 million sq ft during 2026–2027, anchored by GCCs.
“Businesses are impacted by geopolitical situations, but businesses also thrive on excellence, talent, leadership, and cost arbitrage in stable and established markets,” said Sanjay Dutt, MD and CEO, Tata Realty and Infrastructure. “AI and quantum dependence and the right environment to incubate and contribute to change are also important factors. And all of this is India’s competitive edge.”
According to Colliers, GCCs’ preference for sustainable, high-quality, future-ready spaces will continue to drive demand, with flex portfolios and emerging Tier II city hubs adding to the growth story. Occupiers are also expected to prioritise sustainability, premium Grade A spaces, and flexible options for scalability. Tier II cities will also see increased activity due to cost advantages, infrastructure, and talent.
( Originally published on Sep 17, 2025 )
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