Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Foreign firms, primarily from the US, have significantly shaped India's office market over the past five years, leasing 101 million sq ft for Global Capability Centres across seven major cities. GCCs now represent over a third of total office demand, evolving from cost-focused centres to innovation-driven knowledge hubs. While US tech companies' demand may stabilize, interest from EU and UK firms in engineering, BFSI, and consulting is expected to rise. Analysts predict GCCs will account for 40-50 per cent of future office leasing, including increasing presence in Tier-2 cities and co-working spaces.
Foreign companies, particularly from the US, have leased around 101 million sq ft of prime office space over the past five years to establish Global Capability Centres (GCCs) across India's seven key cities, according to data from Colliers India. The total office leasing during this period reached 280.2 million sq ft in Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. This indicates that GCCs accounted for roughly 36 per cent of the workspace demand in these major cities. Advertisement
US corporates alone occupied 71 million sq ft of office space in India during this time to set up their GCCs. Colliers noted that India's office market has expanded significantly in recent years, with GCCs evolving beyond cost-focused operations into innovation-driven, globally integrated knowledge and research hubs.
Arpit Mehrotra, Managing Director of Office Services at Colliers India, projected that foreign companies could lease 35-40 million sq ft of office space annually for GCCs. He added that while demand from US tech-based GCCs may stabilize, firms from the EU and UK are expected to grow their presence, particularly in engineering, manufacturing, BFSI, and consulting sectors.
Madhusudhan G, CMD of Sumadhura Group, emphasized that the growing GCC demand reflects a structural transformation rather than a temporary cycle. For real estate developers, this means focusing on Grade A+ properties with scalable floor plates, strong sustainability standards, and workspaces designed for hybrid, technology-enabled operations.
Shesh Rao Paplikar, Founder & CEO of BHIVE Workspace, highlighted that the trend demonstrates global companies' trust in India's talent and business ecosystem. He also noted that foreign firms increasingly prefer managed, flexible co-working spaces to set up GCCs.
Sijo Jose, Co-Founder and Director of Property Acquisition at SpazeOne, stated that global firms, especially from the US, UK, and EU, are expanding with a long-term view on India, signaling sustained demand for high-quality, scalable office spaces that support talent, compliance, and growth.
Manas Mehrotra, Founder of 315Work Avenue in Bengaluru, added that the GCC landscape has diversified beyond technology and BFSI to include sectors such as retail, aerospace, and life sciences. This diversification is driving demand for co-working spaces with flexible models that help manage costs and risks efficiently. GCCs are increasingly considering Tier-2 cities as well, attracted by lower operating costs, wider talent pools, and improving digital infrastructure.
In the last year alone, foreign companies leased 29.2 million sq ft of office space, accounting for 41 per cent of the total 71.5 million sq ft of office leasing across these seven cities. Analysts project that GCCs will continue to contribute 40-50 per cent of total office space demand in India in the coming years.
Source PTI
FAQ
1. What role have foreign firms played in India's office space market?
Over the past five years, foreign companies, especially from the US, have leased approximately 101 million sq ft of office space in India to establish Global Capability Centres (GCCs). This activity has significantly shaped office demand in seven major cities: Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. GCCs now represent over a third of total office leasing in these markets.
2. How have GCCs evolved in India?
Initially cost-focused, GCCs have transformed into innovation-driven, globally integrated knowledge hubs. They now focus on research, engineering, and advanced business processes, reflecting India's growing talent pool and technology ecosystem.
3. Which sectors and countries are driving future GCC demand?
While demand from US tech firms may stabilize, interest from EU and UK companies is expected to grow, particularly in engineering, BFSI, consulting, manufacturing, aerospace, and life sciences. Analysts predict GCCs will account for 40-50% of future office leasing, including increasing presence in Tier-2 cities and co-working spaces.
4. How is the office space market responding to GCC needs?
Developers are emphasizing Grade A+ offices, scalable floor plates, strong sustainability standards, and hybrid-ready workspaces. Flexible co-working solutions are also gaining traction, offering lower costs and operational efficiency for global firms.
5. What trends indicate long-term GCC growth in India?
In the last year, foreign companies leased 29.2 million sq ft, making up 41% of total office leasing across the seven cities. Experts note that GCCs' long-term expansion reflects structural demand, diversification into non-tech sectors, and interest in Tier-2 cities for lower operating costs and broader talent access.
6. What does this mean for India's real estate and business ecosystem?
The rising GCC presence highlights global confidence in India's talent and business environment. It signals sustained demand for high-quality, scalable office space, supporting long-term economic growth, innovation, and cross-border collaboration.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
