Global Capability Centers (GCCs) have leased out around 100 million square feet of office space across India’s top seven cities since 2021, according to a report by Colliers India, published by Hindustan Times. Bengaluru and Hyderabad have emerged as dominant hubs, accounting for more than 60% of this leasing activity.
The report highlights that GCC demand has gained significant momentum in recent years and is expected to reach 28 million square feet in 2025 — nearly double the levels recorded in 2021.
According to “GCCs in India: Building the Future of Global Enterprises,” the share of GCCs in overall office leasing had fallen to less than 30% in 2022 but has since rebounded and is likely to reach nearly 40% in 2025. This growth is projected to continue, with GCC leasing expected to reach 60–65 million square feet during 2026–2027 — a 15% to 20% rise over the previous two-year period.
“GCCs continue to remain the cornerstone of India’s office market, powering its ongoing scale-up,” said Arpit Mehrotra, managing director, Office Services, Colliers India. “Capability centres in India are steadily evolving into innovation-driven, domain-specialised, and technologically integrated centres.”
He added that GCCs are likely to lease out between 60 and 65 million square feet of Grade A space in the next two years alone, unlocking major real estate opportunities and fueling the demand for high-quality spaces.
The report said that the technology sector continues to lead GCC leasing, holding a 37% share. However, its demand has stabilised in recent years as GCCs shift from traditional support functions to innovation-led roles, driving advancements in AI, data engineering, and product development.
At the same time, GCCs in the BFSI and engineering and manufacturing sectors have expanded rapidly. Office space take-up in these segments has risen three to four times between 2021 and 2025.
According to the report, the share of BFSI in GCC demand has grown from 15% in 2021 to 27% in 2025. This reflects the growing presence of global firms in areas such as risk management, compliance, digital banking, and fintech operations.
Similarly, the share of engineering and manufacturing occupiers has increased from 11% to 17%. Going forward, these two sectors are expected to account for more than 40% of GCC space leased out, indicating a shift toward more diversified demand.
“GCCs will continue to anchor India’s office space demand, supporting the ongoing scale-up and diversification,” said Vimal Nadar, national director and head of research, Colliers India.
Nadar said that while technology companies continue to drive Grade A space leasing by GCCs, BFSI and engineering and manufacturing together are expected to contribute 40% to 50% of demand. He also noted that flex spaces are likely to gain traction as GCCs look for greater scalability and agility in their workplace strategies. Tier II cities are also expected to witness increasing GCC activity, supported by cost benefits, infrastructure growth, and skilled talent pools.
According to the report, Bengaluru and Hyderabad have led the GCC leasing boom, together accounting for over 60% of demand during 2021–2025.
Chennai, meanwhile, is estimated to experience a 5.3-times increase in GCC leasing in 2025 compared to 2021 — the highest among all cities. The report attributes this to affordable rents in the city’s peripheral areas, which appeal to cost-sensitive occupiers.
Bengaluru stands out as the leading hub not just for technology GCCs but also for engineering and manufacturing firms. Mumbai continues to attract front-end BFSI occupiers, while Pune draws major financial institutions for support service operations. In eastern India, Kolkata has become a favored destination for technology and consulting GCCs seeking a regional presence.
Colliers India’s latest report outlines a bullish future for GCC-led office leasing in India. As GCCs diversify and evolve into innovation-led enterprises across sectors, they are set to play a central role in shaping the country’s commercial real estate market in the coming years.