GCCs to Drive 40% of Office Space Demand in Top 6 Indian Cities by FY26-27
Global Capability Centres (GCCs) are projected to lease 50-55 million sq ft of Grade A office space in FY2026-27, accounting for 38-40% of office demand in six major Indian cities. GCCs are expected to grow from 1,700 to over 2,500 by 2030, generating over $100 billion in revenue. US-based GCCs lead demand, with Bengaluru, Hyderabad, and Chennai being top destinations. Technology remains the primary driver, with engineering, manufacturing, and BFSI sectors also showing growth. India's competitive office rentals ($1-2 per sq ft per month) continue to attract international companies.
*this image is generated using AI for illustrative purposes only.
Global Capability Centres (GCCs) are set to play a pivotal role in shaping India's commercial real estate landscape over the next few years, according to recent projections. These centers are expected to significantly boost office space demand in six major Indian cities, reflecting the country's growing importance as a global talent hub.
Projected Office Space Demand
GCCs are anticipated to lease between 50-55 million square feet of Grade A office space during the fiscal years 2026-2027. This substantial demand is expected to account for 38-40% of the overall office space requirements in key urban centers, including:
- Bengaluru
- Chennai
- Delhi NCR
- Hyderabad
- Mumbai MMR
- Pune
GCC Growth and Economic Impact
The expansion of GCCs in India is poised for remarkable growth:
| Metric | Current | Projected (by 2030) |
|---|---|---|
| Number of GCCs | ~1,700 | >2,500 |
| Revenue Generation | - | >$100 billion |
| Workforce Capacity | Current | 1.5-2.0 times increase |
Recent Trends in GCC Office Leasing
- Record Leasing: In FY2025, GCCs leased a record 24 million square feet of Grade A office space.
- Market Share: GCCs' share in total leasing reached 37% in FY2025.
- US Dominance: US-based GCCs have led the demand, accounting for 70% of total GCC absorption since 2021.
City-wise GCC Office Leasing Distribution (FY2023-FY2025)
| City | Share of GCC Office Leasing |
|---|---|
| Bengaluru | 40% |
| Hyderabad | 18% |
| Chennai | 16% |
Sector-wise Trends
While technology remains the primary driver for GCC expansion, other sectors are also showing significant growth:
- Engineering & Manufacturing
- Banking, Financial Services, and Insurance (BFSI)
Cost Advantage
India's prime office rentals remain highly competitive on a global scale:
| Rental Cost | Range |
|---|---|
| Per sq. ft. per month | $1-2 |
This affordability factor continues to be a key attraction for international companies setting up or expanding their GCCs in India.
The projected growth of GCCs in India underscores the country's rising prominence as a global talent hub and its attractiveness for multinational corporations. As these centers continue to expand, they are likely to have a lasting impact on the commercial real estate sector, particularly in tier-1 cities. The trend also highlights India's competitive advantage in terms of skilled workforce and cost-effective office spaces, positioning it as a preferred destination for global companies looking to establish or expand their offshore operations.
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