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Global Capability Centres (GCCs) are expected to lease an additional 50-55 million square feet (msf) of Grade A office space across India's top six markets during FY2026-FY2027, contributing 38-40% of the overall office demand, according to a report by rating agency ICRA.
The rating agency said that the surge in GCC activity is expected to significantly boost commercial real estate in Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region, and Pune. ICRA also projects the number of GCCs in India to grow from 1,700 currently to over 2,500 by 2030, with revenues surpassing USD 100 billion and workforce size increasing by 1.5 to 2 times. The expansion reflects long-term strategic investments by global firms in India. State governments are supporting the trend through subsidies, skill development incentives, and infrastructure initiatives aimed at accelerating GCC growth. "India's commercial office sector is at a pivotal juncture, with GCCs driving a structural transformation in demand. Manpower cost and rental expense account for 70-75 per cent of GCC's cost structure. The country's unique combination of cost competitiveness, deep talent pool, and proactive policy support are attracting global enterprises to establish and expand their strategic operations here," said Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA. "As GCCs evolve into innovation and R&D hubs, ICRA expects sustained leasing momentum, especially in tech-enabled and green-certified office spaces. This trend strengthens India's position as a global business destination and underpins long-term growth prospects for the commercial real estate sector," he further added. The report added that the US-based GCCs have led Grade A office space demand in India, accounting for 70% of total GCC absorption since 2021. While the US market remains dominant, players from the UK, Germany, France, Japan, Australia, and Singapore are steadily increasing their presence. Global firms prefer cities with strong talent pools and established ecosystems, with 65 per cent of new leasing taking place in green-certified integrated tech parks. Despite global headwinds stemming from policy tightening (trade restrictions) in the US, office leasing activities by GCCs in India remained buoyant in H1 FY2026, the report added. According to the report, between FY2023 and FY2025, Bengaluru led GCC office leasing with a dominant 40 per cent share, followed by Hyderabad at 18 per cent and Chennai at 16 per cent. While technology occupiers remain the primary drivers of GCC demand, sectors like Engineering & Manufacturing (Eng & Mfg) and Banking, Financial Services & Insurance (BFSI) are rapidly expanding their footprint. Eng & Mfg's share surged to 25 per cent during FY2023- FY2025 from 12 per cent during FY2018-FY2020, while BFSI's share rose to 21 per cent from 15 per cent during the same period, highlighting India's growing attractiveness for diversified global operations, the report added. (ANI)
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