Global Capability Centres (GCCs) are driving India’s commercial real estate market with their office space leasing projected to grow 15-20% over the next two years. GCCs have leased 100 million sq ft in India’s top cities since 2021 and are poised to shape nearly 40% of the office demand by 2025, signalling a strong growth trajectory for workplace real estate.
GCCs Lead India’s Office Space Demand Surge
Global Capability Centres have become the mainstay of India’s commercial real estate sector. According to real estate firm Colliers, GCCs are set to lease 60-65 million square feet of Grade A office space by 2027. Since 2021, these centres have accounted for 36% of total office leasing across India’s top seven cities, reflecting a nearly doubling of global corporate leasing activity to 28 million square feet by 2025.
Record Rebound and Sectoral Drivers
- GCCs’ share in overall office space leasing rebounded from below 30% in 2022 to nearly 40% in 2025.
- Technology firms lead GCC demand with 37%, closely followed by banking, financial services, and engineering sectors, expected to contribute 40-50% of future leasing.
- The engineering and manufacturing segment within GCCs grew notably, rising from 11% to 17%, linked to increased R&D and product engineering activities.
Geographic Concentration and Emerging Trends
- Bengaluru and Hyderabad together contributed 60% of GCC leasing activity since 2021.
- Chennai witnessed a remarkable 5.3-fold increase in GCC leasing this year compared to 2021 levels.
- Flexible office spaces are gaining momentum as GCCs seek scalable and agile workplace solutions.
- Tier II cities are gradually seeing growth in GCC activity due to cost advantages, better infrastructure, and talent availability.
The FlexInsights Take
Global Capability Centres are solidifying their role as innovation hubs, transforming India’s office landscape by driving a large and increasing portion of leasing demand. Their diverse sectoral growth and geographical expansion, coupled with rising demand for flexible workspace, underscore a maturing real estate market aligned with evolving corporate strategies and talent needs. This positions India’s commercial real estate sector for sustained growth and dynamism over the next several years.
