GCCs to lease 50-55 msf office space by FY2027: ICRA

India’s commercial real estate sector is witnessing a transformative surge, driven largely by the rapid growth of Global Capability Centres (GCCs). According to rating agency ICRA, GCCs are expected to lease an additional 50–55 million square feet of Grade A office space over FY2026–FY2027, contributing roughly 38–40% of overall demand across India’s top six office markets, Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai Metropolitan Region (MMR), and Pune.

ICRA also forecasts that the number of GCCs operating in India will grow from around 1,700 today to over 2,500 by 2030. This expansion could generate more than $100 billion in revenue and increase workforce capacity by 1.5 - 2 times. This growth underscores India’s rising stature as a global business destination and signals strong long-term confidence from multinational corporations in the country’s talent pool and business ecosystem.

Why GCCs Are Driving Commercial Office Growth

Over the past few years, GCCs have emerged as a key growth driver for India’s office real estate sector. These centres, often established by global corporations to handle operations, technology, and research functions, have become strategic hubs for innovation. Their increasing footprint indicates sustained commitment from multinational firms to grow and invest in India.

Several states are supporting this expansion through incentives, including targeted subsidies, workforce training programs, and infrastructure development. These measures aim to attract further investments from global companies seeking high-quality, cost-effective operational bases.

Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings at ICRA, explains: “India’s commercial office sector is at a pivotal stage, with GCCs driving structural transformation in demand. For these centres, manpower and rental costs make up 70–75% of total expenses. India’s combination of cost competitiveness, deep talent availability, and proactive policy support is attracting global enterprises to establish and scale their operations here. As GCCs evolve into innovation and R&D hubs, we expect sustained leasing momentum, particularly in tech-enabled and green-certified office spaces.”

Global Players and Green Offices

The US has traditionally led the GCC sector in India, accounting for about 70% of all Grade A office space absorption since 2021. However, other countries, including the UK, Germany, France, Japan, Australia, and Singapore, are steadily increasing their presence.

Global firms increasingly favour cities with robust talent pools, established business ecosystems, and green-certified office spaces. Nearly 65% of new GCC leasing occurs in integrated tech parks that meet environmental and sustainability standards. Even amid global uncertainties, such as trade restrictions and policy tightening in the US, India’s GCC leasing remained resilient in the first half of FY2026, highlighting the sector’s stability.

City-Wise GCC Expansion

Bengaluru remains the leader, contributing a dominant 40% of GCC office leasing between FY2023 and FY2025. Hyderabad and Chennai followed with 18% and 16%, respectively. While technology firms continue to drive most demand, other sectors like Engineering & Manufacturing (E&M) and Banking, Financial Services & Insurance (BFSI) are expanding rapidly.

The E&M sector’s share of GCC leasing surged from 12% during FY2018–FY2020 to 25% in FY2023–FY2025, while BFSI increased from 15% to 21% over the same period. This trend highlights India’s growing appeal to global companies seeking diverse operations beyond traditional IT services.

Cost Advantage and Strategic Appeal

India’s office rentals, at just $1–2 per square foot per month for prime locations, make it one of the most cost-effective markets globally. Compared to other low-cost destinations like Vietnam, Mexico, and the Philippines, India offers a unique combination of affordability, scale, and deep talent availability.

In FY2025, GCCs leased a record 24 million square feet of Grade A office space across the top six cities, with their share of total leasing rebounding to 37% from a low of 27% in FY2023. These centres are evolving beyond back-office functions to become hubs for innovation, product development, AI and machine learning, cloud computing, and digital transformation.

With approximately 1,700 GCCs in operation today, ICRA expects the number to exceed 2,500 by 2030. This growth is projected to generate more than $100 billion in revenue and expand workforce capacity by up to twice its current size, further strengthening India’s position as a preferred destination for global enterprises.

The Road Ahead

ICRA’s analysis underscores a long-term positive outlook for India’s commercial office market. The GCC-driven expansion not only boosts office space demand but also enhances India’s global reputation as a centre for innovation and strategic operations. With strong policy support, cost competitiveness, and a large, skilled workforce, India is poised to remain a top destination for global capability centres, cementing its role as a key hub in the global business landscape.