Global Capability Centres (GCCs) are rapidly expanding in India, projected to lease 50-55 million sq ft of Grade A office space by FY 2027, accounting for nearly 40% of India’s office space demand. This surge is transforming India’s commercial real estate market, driven by evolving GCC roles, technological innovation, and a growing, skilled workforce.
The Rise of GCCs in India’s Real Estate Sector
- US-based GCCs lead demand, comprising 70% of GCC-absorbed Grade A office space since 2021
- Presence from the UK, Germany, France, Japan, Australia, and Singapore is expanding steadily.
- GCCs favour cities with strong talent, infrastructure, and green-certified integrated tech parks, which account for 65% of their new leasing.
Transformation from Operations to Innovation Hubs
- GCCs evolve beyond back-office functions to drive AI, digital transformation, product development, and cloud services
- Number of GCCs expected to increase from approximately 1,700 to over 2,500 by 2030
- Revenue generation forecast to surpass USD 100 billion, with workforce scaling by 1.5 to 2 times
Impact on India’s Commercial Real Estate Market
- Strong leasing momentum is evident with GCCs driving 36-40% of office demand across top cities
- Bengaluru and Hyderabad contributed 60%+ of GCC activity post-2021, with Chennai witnessing a 5.3-fold rise this year
- Flexible workspaces and Tier II city growth support scalability and cost efficiency for GCC portfolios
The FlexInsights Take
The increasing footprint of Global Capability Centres in India marks a new growth engine for commercial real estate. GCCs have shifted from cost centres to innovation powerhouses and strategic hubs, fueling office leasing demand across major metros and emerging Tier II cities. Their focus on technology-led workspaces and sustainability enhances India’s appeal as a global destination. This trend presents significant opportunities for investors, developers, and workspace providers to cater to scalable, tech-driven office environments that match GCCs’ evolving needs. As GCCs grow their workforce and revenue, India’s office market is likely poised for sustained expansion through 2027 and beyond.
