India’s Global Capability Centres (GCCs) have staged a powerful comeback, driving over 40% of the nation’s office leasing demand in 2025, according to Colliers. Key demand drivers extend beyond technology to BFSI, engineering, healthcare and consulting, reflecting new momentum in diversified sectors and city micro-markets. Major urban hubs like Bengaluru, Hyderabad and Chennai now form the backbone of pan-India GCC expansion, with regional leasing spikes and growing interest from Tier II cities.
Technology Dominance Broadens
Technology GCCs remain the mainstay, contributing 37% of total office leasing demand. However, leasing growth in this segment has steadied as sectors such as BFSI and engineering have sharply increased their footprint, now accounting for nearly half the new GCC leasing demand.
BFSI and Engineering Surge
Between 2021 and 2025, BFSI’s share jumped from 15% to 27%, fueled by fintech, digital banking, compliance, and risk management needs. Engineering and manufacturing occupiers expanded from 11% to 17%, building momentum with robust R&D and product engineering activity. Healthcare and consulting GCCs also widened their imprint, diversifying the market’s demand base.
Leading Urban Hubs
Bengaluru and Hyderabad drove over 60% of total GCC leasing since 2021, with Bengaluru excelling in both technology and global engineering spaces. Chennai saw a dramatic 5.3X increase in GCC leasing in 2025—outperforming all other cities and appealing to cost-sensitive occupiers. Mumbai attracted front-end BFSI operations, Pune focused on support services, and Kolkata grew as an eastern consulting and technology hub.
Micro-Markets and Flex Trends
The top 10 micro-markets—mostly in Bengaluru, Hyderabad, and Chennai—commanded nearly three-fourths of GCC demand. Bengaluru’s ORR and Hyderabad’s SBD alone comprised 37% of national GCC leasing since 2021, underscoring the clustering of high-quality, innovation-driven centres in prime locations.
Sustainability and Tier II Momentum
GCCs now prefer sustainable, future-ready Grade A spaces, with growing interest in flex portfolios for scalability. Emerging Tier II hubs, drawn by cost and talent, are adding a new growth dimension to the market. Demand is projected to cross 60 million sq ft during 2026–2027, ensuring GCCs remain the anchor of India’s office story.
The FlexInsights Take
India’s GCC landscape is transforming fast—driven by sectoral shifts, vibrant city corridors, and a decisive move toward sustainable, scalable workspace formats. For occupiers and developers, adapting to this diversified, Tier II–infused momentum will be key to unlocking the next chapter in office market growth.
