GCCs have leased about 100 million sq ft in India since 2021, the highest in Bengaluru and Hyderabad: report

GCCs' demand is expected to touch 28 million square feet in 2025, nearly double the levels seen in 2021, according to a report by Colliers India

Global Capability Centers (GCCs) have leased around 100 million sq ft of office space across the top seven cities in India since 2021. Over the past few years, GCC demand has gained strong momentum, with leasing activity by global corporates estimated to touch 28 million square feet in 2025, nearly double the levels seen in 2021, according to areport by Colliers India, a real estate consultancy firm.

Bengaluru and Hyderabad have established themselves as India’s leading GCC hubs, according to the Colliers India report. Since 2021, more than 60 million square feet of GCC leasing has been conducted in these Hubs. (Picture for representational purposes only) (Pexels)

The report said that Bengaluru and Hyderabad have established themselves as India’s leading GCC hubs, with more than 60 million square feet of GCC leasing since 2021.

According to the report, the share of GCCs in overall office leasing, which had dipped to less than 30% in 2022, has rebounded sharply to nearly 40% in 2025. This growth trajectory is expected to sustain, with GCC leasing projected at 60–65 million square feet during 2026–2027, a 15-20% growth compared to the preceding two-year period, according to Colliers’ latest report, “GCCs in India: Building the Future of Global Enterprises."

“GCCs continue to remain the cornerstone of India’s office market, powering its ongoing scale-up. Capability centres in India are steadily evolving into innovation-driven, domain-specialised, and technologically integrated centres, and are likely to drive over 40% of India’s office space demand. In the next two years alone, GCCs are likely to lease 60-65 million square feet of Grade A space across the top 7 cities, unlocking significant real estate opportunities, fueling demand for high-quality spaces, and cementing their role as the critical growth engine of India’s office market.” Arpit Mehrotra, Managing Director, Office Services, Colliers India said.

BFSI and Engineering and manufacturing to fuel GCC expansion

According to the report, while the technology sector continues to lead GCC leasing with a 37% share, its demand has stabilised in recent years. Simultaneously, Technology GCCs are evolving from traditional support hubs into innovation-led centres, driving advancements in AI, data engineering, and product development for global enterprises.

The report said that BFSI, engineering, and manufacturing have expanded rapidly, with office space take-up rising 3- 4 times between 2021 and 2025. In terms of contribution to overall GCC demand in India, the share of BFSI has grown from 15% in 2021 to 27% in 2025, reflecting the increasing footprint of global firms in the areas of risk management, compliance, digital banking, and fintech.

"Similarly, within GCCs, the share of engineering and manufacturing occupiers has risen from 11% to 17%. Going forward, BFSI and engineering and manufacturing firms are expected to account for over 40% of GCC space uptake, underscoring the ongoing demand transition from tech-led to a broad-based growth," the report said.

“GCCs will continue to anchor India’s office space demand, supporting the ongoing scale-up and diversification. While technology firms continue to drive Grade A space uptake by GCCs, the demand is becoming broader, with BFSI and engineering and manufacturing together expected to contribute 40–50% of leasing. Flex spaces too, are likely to gain traction as GCCs seek greater scalability and agility in their workplace portfolios. At the same time, Tier II cities are likely to see a steady uptick in GCC activity, supported by cost arbitrage, infrastructure development, and talent availability,” Vimal Nadar, National Director and Head of Research, Colliers India said.

Bengaluru and Hyderabad drive 60% of GCC demand during 2021-2025

According to the report, Bengaluru and Hyderabad combined drove more than 60% of total GCC demand during the 2021-2025 period. Meanwhile, Chennai is estimated to witness a 5.3X surge in GCC leasing in 2025 compared to 2021 levels, the highest among all cities. Owing to affordable rentals, especially in peripheral locations, Chennai continues to attract cost-sensitive occupiers.

The report said that Bengaluru stands out as the premier hub not only for technology GCCs but also for global engineering and manufacturing firms. Mumbai, on the other hand, is favored by front-end BFSI players, while Pune attracts leading financial institutions, particularly for support service operations. In the east, Kolkata has become a natural choice for technology and consulting GCCs seeking a presence in that region.