Bengaluru, September 17, 2025 — Global Capability Centers (GCCs) are emerging as the dominant force in India’s commercial real estate market, with leasing activity projected to reach unprecedented levels over the next two years. According to Colliers’ latest report, “GCCs in India: Building the Future of Global Enterprises,” released at the RICS CRE Conference in Bengaluru, these offshore business units are expected to lease 60-65 million square feet of Grade A office space during 2026-2027, representing 15-20% growth compared to the previous two-year period.
Record-Breaking Growth Trajectory
Since 2021, GCCs have leased approximately 100 million square feet of office space across India’s top seven cities, accounting for 36% of overall office demand. This momentum is accelerating, with GCC leasing estimated to reach 28 million square feet in 2025—nearly double the 2021 levels and representing 40% of total office absorption.
“GCCs continue to be the cornerstone of India’s office market, powering its ongoing scale-up,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India. “Capability centers in India are steadily evolving into innovation-driven, domain-specialized, and technologically integrated centers. In the next two years alone, GCCs will unlock significant real estate opportunities, fuel demand for high-quality spaces, and cement their role as the critical growth engine of India’s office market.”
Market Evolution and Sector Diversification
While technology companies continue to lead GCC leasing with a 37% market share, the sector landscape is rapidly diversifying. Banking, Financial Services, and Insurance (BFSI) firms have dramatically expanded their presence, with office space uptake rising 3.8 times between 2021 and 2025. The sector’s share of total GCC demand has surged from 15% in 2021 to 27% in 2025, driven by increased focus on risk management, compliance, digital banking, and fintech operations.
Similarly, engineering and manufacturing companies have experienced remarkable growth, with their share increasing from 11% to 17% during the same period—a 3.4x rise in leasing volumes. Healthcare and consulting sectors have also expanded significantly, with healthcare GCC leasing growing 5.8 times since 2021.
GCC Leasing Trends by Sector (2021 vs 2025E)
| Sector | 2021 Share | 2025E Share | Growth Multiple |
|---|---|---|---|
| Technology | 55% | 36% | 1.4x |
| BFSI | 15% | 27% | 3.8x |
| Engineering & Manufacturing | 11% | 17% | 3.4x |
| Healthcare | 2% | 8% | 5.8x |
| Consulting | 3% | 5% | 4.7x |
Geographic Concentration and Emerging Hubs
Bengaluru and Hyderabad continue to dominate the GCC landscape, driving over 60% of total demand since 2021 with a combined 60+ million square feet of leasing activity. However, Chennai is emerging as a high-growth market, with GCC leasing expected to surge 5.3 times in 2025 compared to 2021 levels—the highest growth rate among all major cities.
“GCCs will continue to anchor India’s office space demand, supporting ongoing scale-up and diversification,” noted Vimal Nadar, National Director & Head of Research, Colliers India. “While technology firms continue to drive Grade A space uptake, demand is becoming broader, with BFSI and engineering & manufacturing together expected to contribute 40-50% of leasing. Tier II cities are likely to see steady uptick in GCC activity, supported by cost arbitrage, infrastructure development, and talent availability.”
City Performance Highlights (2025E vs 2021)
| City | 2021 (msf) | 2025E (msf) | Growth Multiple | 2025E Market Share |
|---|---|---|---|---|
| Bengaluru | 4.6 | 10.6 | 2.3x | 38% |
| Chennai | 0.9 | 4.8 | 5.3x | 17% |
| Delhi NCR | 2.0 | 4.6 | 2.3x | 16% |
| Hyderabad | 3.7 | 5.2 | 1.4x | 19% |
| Mumbai | 0.9 | 1.4 | 1.6x | 5% |
Micro-Market Leadership
The top 10 micro-markets have captured over 70% of pan-India GCC demand since 2021, with Southern cities dominating the landscape. Bengaluru’s Outer Ring Road (ORR) and Hyderabad’s Secondary Business District (SBD) together account for 37% of the country’s GCC demand, making them the most preferred locations for multinational corporations and Fortune 500 companies.
Other prominent hubs include Whitefield and North Bengaluru, various SBD locations in Hyderabad, OMR Zone 1 and MPR in Chennai, Kharadi in Pune, and Malad/Goregaon in Mumbai. These locations benefit from robust infrastructure, high-quality office supply, and access to skilled talent.
Global Enterprise Expansion
US-based companies remain the dominant force in India’s GCC market, accounting for approximately 70% of total absorption since 2021. This leadership is driven by substantial space uptake from global technology giants and Fortune 500 firms establishing offshore captive business units.
Notably, companies from the UK, EMEA, and APAC regions are increasingly expanding their Indian footprints. In 2025, an estimated 10% of the 28 million square feet of GCC space uptake is expected to come from APAC countries including Japan, Australia, and Singapore, reflecting the growing geographic diversification of India’s GCC ecosystem.
Future Outlook
The report projects continued strong growth, with GCC leasing expected to reach 70-85 million square feet annually by 2027, maintaining over 40% share of total office demand. Key trends shaping the future include:
- Sustainability and Quality Focus: Flight-to-quality strategies driving preference for premium, future-ready spaces
- Flexible Workspace Adoption: Increased traction for flex spaces as GCCs seek scalability and agility
- Geographic Expansion: Growing activity in Tier II cities supported by cost advantages and infrastructure development
- Sector Diversification: Continued expansion beyond technology into BFSI, engineering, healthcare, and consulting
As India’s office market continues to mature, the country is cementing its position as a global hub for capability centers, attracting an increasingly diverse mix of occupiers from across regions and sectors.
About the Report “GCCs in India: Building the Future of Global Enterprises” analyzes Grade A office stock across India’s top seven cities: Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune. Data includes gross absorption excluding lease renewals, pre-commitments, and deals with only Letters of Intent signed.
About Colliers Colliers (NASDAQ, TSX: CIGI) is a leading global diversified professional services company specializing in commercial real estate services, engineering consultancy, and investment management. With operations in 70 countries and 22,000 professionals, Colliers has consistently delivered approximately 20% compound annual investment returns for shareholders over nearly 30 years. With annual revenues exceeding $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property, infrastructure, and real assets to accelerate client success.
