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India’s commercial real estate landscape is experiencing a transformative shift, largely driven by the rising demand for Global Capability Centers (GCCs). The rapid growth of GCCs is reshaping office leasing patterns, with significant implications for the short-term and long-term future of India’s office space market.
According to the ANSR report, between 2022 and the first half of 2024, GCCs have leased an impressive 53 million square feet of office space in India, accounting for 36% of the country’s rental workspace. The increased demand for high-quality office spaces by GCCs highlights the growing role of these centres in the Indian economy. GCCs currently occupy around 32% of India's total office stock, approximately 160.8 million square feet.
In the future, GCCS's demand for office spaces will continue upward. By 2026, it is projected that GCCs will occupy 42% of India's rental workspace, reflecting a significant growth trend in their footprint across the country.
The report reveals that 75% of the GCC demand is concentrated in three cities, Bengaluru, Hyderabad, and Chennai. Bengaluru leads the charge with a dominant 40% share of the leasing activity, followed by Hyderabad at 21% and Chennai at 14%. Other major markets, such as Delhi/NCR, Mumbai, and Pune, are also seeing increasing demand from GCCs, but the lion’s share of leasing remains in these top three cities.
The demand for office spaces from GCCs is largely driven by specific sectors, with technology companies representing the largest portion at 47%. Flexible space providers follow closely at 19%, and the BFSI (banking, financial services, and insurance) sector makes up 16% of the demand. The manufacturing sector also plays a role, contributing 9% to the overall demand.
While traditional office hubs like Bengaluru’s Outer Ring Road and Hyderabad’s Gachibowli area remain popular, newer micro-markets are gaining traction. Key locations include Bengaluru's Hebbal and Whitefield, Delhi/NCR's Gurgaon NH-8 corridor, Mumbai’s Western Suburbs (Borivali, Kandivali, Goregaon), and Chennai’s OMR Zone 1. In Pune, areas like Kharadi, Hinjewadi, and Baner are emerging as hotspots for office leasing activity from GCCs.
In line with global trends, sustainability is becoming a priority for developers and occupiers. More than 75% of leasing in 2022 was concentrated in pre-certified green buildings, highlighting the growing emphasis on environmentally friendly and sustainable real estate. This trend is expected to accelerate as corporate occupiers and developers prioritise sustainability in their decision-making processes.
