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The presence of Global Capability Centres (GCCs) of multinational corporations has been expanding in India's office space market over the past few years. According to ANAROCK Research, the top seven cities recorded over 141.43 million sq. ft. of gross leasing in 2023 and 2024, with GCCs contributing 52.88 million sq. ft., accounting for more than 37% of the total share. Bengaluru led the market with a 46% share, followed by Hyderabad with 19%. The increasing economic influence of India, infrastructural advancements, and government policies such as 'Make in India' have contributed to this surge in demand. Moreover, the growing focus of GCCs beyond the IT/ITeS and BFSI sectors into engineering and manufacturing is further driving market expansion.
Over the past few years, the Indian office space market has witnessed a significant increase in the presence of Global Capability Centres (GCCs) of multinational corporations. While the top seven Indian cities remain the primary locations for leasing activities, recent government support announced in the Union Budget 2025-26 is anticipated to stimulate demand in Tier 2 and 3 cities as well. Advertisement
As per ANAROCK Research, the top seven cities recorded over 141.43 million sq. ft. of gross leasing in the last two years-2023 and 2024. Of this, GCCs leased approximately 52.88 million sq. ft., contributing over 37% to the overall market share. Bengaluru led the leasing activity with around 24 million sq. ft., securing a 46% share, while Hyderabad ranked second with over 10.06 million sq. ft., representing nearly 19% of the total among these cities. Other key cities included Delhi-NCR, which saw GCCs leasing 5.09 million sq. ft. of office space, while Pune and Chennai recorded 5.28 million sq. ft. and 5.29 million sq. ft., respectively. Mumbai had 2.82 million sq. ft. of GCC-leased space, whereas Kolkata witnessed a modest leasing activity with only 0.15 million sq. ft.
GCCs, also known as Global In-House Centres (GICs), serve as offshore units of multinational corporations, handling diverse functions such as IT services, finance, analytics, research, and operations. India has become a strategic hub for these centres due to its skilled workforce, technological expertise, and favourable business environment. Over the years, GCCs have evolved from cost-saving back-office operations into key innovation hubs driving digital transformation and business growth. Incremental hiring in GCCs is expected to generate additional demand for 200-225 million sq. ft. of office space by 2030.
Peush Jain, Managing Director of Commercial Leasing and Advisory at ANAROCK Group, stated that India's expanding economic footprint over the past two to three years has strengthened the confidence of GCCs, attracting them to key cities such as Bengaluru, Mumbai, Hyderabad, Pune, and Chennai. Unlike the pre-pandemic period, when GCCs primarily focused on IT/ITeS and BFSI sectors, they are now shifting towards engineering and manufacturing. Various factors, including India's emergence as a global economic hub, the government's focus on the 'Make in India' initiative, and improved infrastructure and connectivity, have contributed to this transition.
The Union Budget 2025-26 reinforced the government's commitment to attracting GCCs by introducing a national guidance framework aimed at assisting states in promoting and retaining these centres, further enhancing India's appeal as a global business destination. With India's increasing economic influence, this initiative is expected to extend office space demand beyond major metropolitan areas into smaller cities.
In the past two years, GCCs leased approximately 52.88 million sq. ft. across the top seven cities, with nearly 24.5 million sq. ft. leased in 2023 and about 28.38 million sq. ft. in 2024, marking a 16% year-on-year growth. Bengaluru saw an annual increase of 10% in leased office space, while Hyderabad witnessed a 6% decline. Chennai and Pune recorded notable increases of 64% and 52%, respectively. In Delhi-NCR, Mumbai, and Kolkata, leasing activity also showed varying degrees of growth.
In conclusion, the growth of GCCs in India's office space market reflects not only a shift in corporate strategy but also the nation's emergence as a key player in the global economy. The future of India's office market appears promising, as it meets the evolving needs of both multinational corporations and a diversifying economic framework throughout the country.
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