GCCs to power 40% of India's office demand: why global firms are doubling down on India

India’s office real estate sector is witnessing a structural shift led by Global Capability Centres (GCCs), which are fast emerging as the country’s most resilient and strategic occupier base. According to a new report by rating agency ICRA, GCCs are expected to lease an additional 50-55 million square feet (msf) of Grade A office space between FY2026 and FY2027—accounting for 38-40% of total office demand across India’s top six markets.

That scale of expansion underscores how multinational corporations are recalibrating their global operations to rely more heavily on India—not just for back-office support, but as a key hub for innovation, product development, and digital transformation.

A decade-defining expansion

ICRA projects that the number of GCCs in India will surge from around 1,700 today to more than 2,500 by 2030, generating over $100 billion in annual revenue and expanding workforce capacity by 1.5-2 times. That means the next five years could see an additional 800 global centres opening across Indian cities, spanning technology, banking, engineering, life sciences, and manufacturing sectors.

“The Indian commercial office sector is at a pivotal juncture, with GCCs driving a structural transformation in demand,” said Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA. “Manpower and rental expenses account for 70-75% of a GCC’s cost structure. India’s cost competitiveness, deep talent pool, and proactive policy support are driving this wave of expansion.”

This rapid scaling is significant not just for developers and landlords, but for state governments and policymakers who have started to recognize GCCs as a critical lever of economic growth and employment generation. Several states, including Telangana, Tamil Nadu, and Karnataka, are offering incentives such as skill training subsidies and plug-and-play infrastructure, tailored to attract GCC investments.

Talent, cost, and confidence

The cost advantage remains India’s strongest magnet. Prime office rentals in the country average $1-2 per sq. ft. per month—among the lowest globally. When combined with an abundant supply of skilled engineers and data professionals, India offers a value proposition that few competing geographies—whether Vietnam, the Philippines, or Mexico—can match.

Equally important is the strategic evolution of GCCs themselves. Over the past decade, they have transformed from low-cost processing hubs into high-value centres of excellence that drive AI, machine learning, cloud computing, and product design.

“The global occupier mindset has shifted,” says a senior executive at a global real estate consultancy. “GCCs are now central to corporate innovation strategies, not peripheral to them. That makes India indispensable.”

US leads, but global mix deepens

Historically, US-based corporations have dominated India’s GCC ecosystem, accounting for 70% of total leasing since 2021. But the next wave of demand is becoming more geographically diversified, with enterprises from Germany, France, Japan, Australia, and Singapore scaling their footprints.

ICRA data shows that 65% of new GCC leasing is concentrated in green-certified integrated tech parks, as companies align real estate decisions with sustainability goals. These campuses—designed for energy efficiency, flexible work models, and collaboration—have become the preferred choice for global firms building long-term India strategies.

Despite global headwinds—from trade policy uncertainty in the US to slowing economic growth in Europe—India’s GCC leasing activity has remained buoyant through FY2026. This resilience reflects the “stickiness” of India’s value proposition: once global firms set up operations here, they rarely move them elsewhere.

Bengaluru retains its edge

Among India’s top office markets, Bengaluru continues to lead, accounting for 40% of total GCC leasing between FY2023 and FY2025, followed by Hyderabad (18%) and Chennai (16%).

While technology companies remain the anchor tenants, other sectors are catching up fast. The Engineering & Manufacturing (Eng & Mfg) vertical doubled its share of GCC leasing to 25% during FY2023–FY2025 (from 12% in FY2018–FY2020), while Banking, Financial Services and Insurance (BFSI) rose to 21% from 15%. This diversification is expanding GCC activity beyond traditional IT corridors and into industrial and financial hubs.

“India’s office market has regained momentum post-pandemic, led by the steady rise of GCCs,” Reddy noted. “Compared to other low-cost destinations, India offers a rare combination of affordability, capability, and scale.”

In FY2025 alone, GCCs leased a record 24 msf of Grade A office space across the top six cities—lifting their share of total leasing to 37%, up from 27% in FY2023.

Beyond real estate: a structural story

The rise of GCCs is not just a real estate trend; it reflects the deepening of India’s role in the global value chain. As multinationals seek operational resilience and technology capability, India offers both—underpinned by policy stability and infrastructure growth.

The next phase of GCC growth will likely hinge on upskilling, R&D capability, and flexible work infrastructure rather than pure cost arbitrage. Developers are responding by integrating innovation labs, data centres, and sustainability features into new office projects.

For India’s commercial real estate sector—buoyed by stable rentals and strong demand visibility—the GCC wave provides a multi-year growth cushion even as other occupier categories remain cyclical.

As Reddy summed up, “GCCs are no longer just tenants; they’re strategic partners in India’s growth story. Their evolution into innovation hubs ensures that India’s office demand is not a short-term rebound, but a long-term structural phenomenon.”