Hyderabad Tops India’s GCC Office Market as Premium Rentals Rise, Reveals IIM Bangalore–CRE Matrix Index

India’s Global Capability Centre (GCC) ecosystem continues to transform the country’s commercial real estate market, with Hyderabad emerging as the nation’s highest-priced destination for GCC office space. According to the inaugural IIM Bangalore–CRE Matrix GCC Commercial Property Rental Index (GCC-CPRI) for Q1 CY2026, Hyderabad recorded the highest GCC-CPRI score of 212.1, supported by strong occupier demand and a 15% rental premium over non-GCC office tenants.

The pan-India GCC-CPRI stood at 165 during the first quarter of 2026, using Q1 CY2014 as the base period. While the national index reflected stable market conditions with a three-year compound annual growth rate (CAGR) of 0.9%, city-level performance varied significantly, highlighting the evolving dynamics of India’s major office markets as multinational companies continue expanding their GCC operations.

Bengaluru and Pune Continue to Strengthen Their Position

While Hyderabad topped the rankings, Pune and Bengaluru also delivered strong performances. Pune recorded a GCC-CPRI of 210.7, with GCC occupiers paying nearly 21% higher rentals than non-GCC tenants, underlining the city’s growing appeal for technology and engineering centres.

Meanwhile, Bengaluru retained its position as India’s largest and most mature GCC office market. The city posted a GCC-CPRI score of 190 alongside a three-year growth rate of 1.6%, reflecting consistent demand for Grade A office space from multinational corporations.

Commenting on the findings, Abhishek Kiran Gupta, Co-founder & CEO of CRE Matrix & IndexTap, said, “The first edition alone throws up findings that should reshape how developers and investors think about GCC-readiness: a 15% rental premium in Hyderabad, and early signs that Bengaluru, Pune and NCR’s GCC demand are driving price-efficient decisions.”

Emerging Markets Show Strong Rental Momentum

Beyond the established office hubs, the report also highlights growing momentum across western India. Navi Mumbai recorded the highest three-year GCC rental CAGR among major office markets at 13.4%, while Mumbai and Thane continued to witness healthy rental growth as GCC occupiers expanded into newer business districts.

At the micro-market level, Mumbai’s Central Suburbs and Chennai’s Northern Suburbs emerged as the strongest-performing office clusters, each registering a GCC rental CAGR of more than 22% over the past three years. The report also noted that softer GCC index readings in Chennai and Delhi-NCR were largely driven by changes in the transaction mix and regional composition, rather than by weakening occupier demand.

GCCs Continue to Shape India’s Office Market

The GCC-CPRI is India’s first dedicated rental index designed specifically to track effective office rents paid by Global Capability Centres. It is based on one of the country’s largest transaction-level commercial real estate databases, covering nearly 1 billion sq. ft. of office stock, more than 2,000 commercial assets, and over 19,000 lease transactions.

Highlighting the significance of the new benchmark, Venkatesh Panchapagesan, Professor of Finance and Chairperson of the Real Estate Research Initiative at IIM Bangalore, said, “Global Capability Centres have quietly become one of the most consequential forces in Indian commercial real estate… We hope this index becomes a standing reference for how India’s GCC office market actually moves, quarter on quarter.”

As multinational companies continue expanding their operations in India, the report underscores that GCC occupiers are increasingly shaping rental trends, development strategies, and investment decisions. For developers, landlords, flexible workspace operators, and institutional investors, understanding GCC demand is becoming essential to planning the next generation of Grade A office spaces.