India’s Global Capability Centers (GCCs) are increasingly pivotal in the office space market. According to a real estate consultancy Anarock report, GCCs have now secured 37% of office space leases in the country’s top seven cities. This rapid growth reflects the sector’s evolving importance within India’s economic landscape.

Over the past two years (2023-2024), GCCs leased a substantial 52.88 million square feet of office space, contributing significantly to the total leasing activity in these cities. Bengaluru remains the dominant player, accounting for nearly 46% of the leasing activity, with approximately 24 million square feet leased in this period. Hyderabad follows in second place, with over 10 million square feet leased, holding a 19% share.

The report highlights a strong growth trajectory, with leasing by GCCs increasing from 24.5 million square feet in 2023 to 28.38 million square feet in 2024—a 16% year-on-year rise. This uptick signals a thriving demand for office space in key markets as companies expand their GCC operations in India.

The increase in demand is not confined to just the major metropolitan hubs. The government’s recent initiatives in the Union Budget 2025-26 aim to further support and incentivize the growth of GCCs, particularly in Tier 2 and Tier 3 cities. Anarock’s research indicates that these regions are set to see heightened interest as companies look to diversify their operations and take advantage of improved infrastructure and government policies such as the ‘Make in India’ initiative.

GCCs, which were traditionally focused on the IT/ITeS and BFSI sectors, are now branching out into other industries like engineering and manufacturing. This shift is attributed to India’s growing prominence as a global economic powerhouse, bolstered by a more robust infrastructure, including better connectivity through airports, highways, and rail networks. Peush Jain, MD of Commercial Leasing at Anarock, noted, “India’s rising economic influence in the last two to three years has boosted the confidence of GCCs and attracted them to key markets in the country, including Bengaluru, Mumbai, Hyderabad, Pune, and Chennai.”

As GCCs scale their operations, the demand for office space will surge even further. Anarock’s projections suggest that by 2030, the sector will drive the demand for an additional 200-225 million square feet of office space. This growth will likely reshape India’s commercial real estate landscape, fostering new leasing activity and a greater emphasis on flexible and coworking office solutions.

The future of India’s office market is undeniably tied to the expansion of its GCC sector. As these centres evolve and contribute to India’s economic growth, they become essential to the commercial real estate ecosystem, creating more demand for flexible office spaces and setting the stage for a booming real estate market.