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McDonald's has leased 1.56 lakh sq ft in RMZ Nexity, Hitec City, Hyderabad, to set up its first Global Capability Centre (GCC) in India, marking a strategic shift toward backend operations. The five-year lease, starting February 2025, includes a INR 1.43 crore monthly rent and a 15% hike after three years. This move is expected to create 2,000 jobs. Hyderabad continues to attract global firms due to its skilled talent pool, affordable rentals, and strong infrastructure. With rising GCC activity and over 14 million sq ft of leasing recorded in Q1 2025 alone, the city is emerging as a major office space hub.
Fast food giant McDonald's has leased over 1.56 lakh sq ft of office space in RMZ Nexity, Hitec City, Hyderabad, marking its first Global Capability Centre (GCC) in India. This decision highlights the city's growing importance as a business destination for global firms beyond traditional IT operations. Advertisement
The company will pay INR 1.43 crore in monthly rent with a five-year agreement beginning February 1, 2025. The deal includes a rent escalation clause of 15% after three years. McDonald's has also deposited INR 8.6 crore as security. The GCC will act as a hub for internal operations and is expected to generate about 2,000 new jobs in the region, according to an article.
Over the last decade, Hyderabad has become a key destination for GCCs. According to a report by Nasscom, India had more than 1,580 such centres as of 2023, with Hyderabad accounting for nearly 20% of new additions in the last two years. Companies like Microsoft, Amazon, Google, and Meta already have large centres in the city. In fact, Microsoft recently acquired land worth INR 181 crore near the city, and Meta renewed its lease for 370,000 sq ft. The demand for commercial space is rising rapidly, with Knight Frank estimating that Hyderabad may surpass 200 million sq ft of office space stock by 2030.
Hyderabad's appeal lies in its skilled workforce, steady infrastructure development, and relatively affordable lease rates compared to Bengaluru and Mumbai. Data from Colliers India shows that the average commercial rental rate in Hyderabad's IT corridors ranges between INR 60-INR 90 per sq ft, making it competitive for long-term investments. The city's efforts to maintain strong public infrastructure and power availability have also helped reduce downtime for tech and service operations.
Leasing activity across India's top cities is showing positive signs. A recent report by CBRE highlighted that office leasing volumes in Q1 2025 have already touched 14 million sq ft, a 27% year-on-year increase. Key sectors driving demand include tech, BFSI, and global service providers like McDonald's. Developers such as RMZ, DLF, and Mindspace are now fast-tracking construction of large office parks to meet this demand.
The establishment of McDonald's GCC in Hyderabad shows the city's ability to attract global players not just for their consumer markets but also as a critical backend engine. As demand for skilled talent and stable office ecosystems increases, Hyderabad is likely to see continued interest from both new entrants and established firms.
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