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Foreign companies, led largely by US-based corporates, have leased around 101 million sq ft of office space across India's seven major cities over the past five years to establish Global Capability Centres (GCCs), according to Colliers India. This accounted for 36 per cent of the total 280.2 million sq ft of gross office leasing recorded between 2020 and 2025 in Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune. US firms alone absorbed nearly 71 million sq ft, reinforcing their dominant role in GCC-led demand. Colliers noted that GCCs have evolved beyond cost-arbitrage centres into globally integrated hubs for innovation and research. The consultant expects foreign entities to lease 35-40 million sq ft annually for GCCs, potentially lifting their share of India's office demand to as much as 50 per cent in the coming years.
Foreign corporations have emerged as a key driver of India's office market over the past five years, leasing 101 million sq ft of workspace to establish Global Capability Centres across the country's top commercial hubs, according to data released by Colliers India. Advertisement
Between 2020 and 2025, gross office leasing across seven major cities stood at 280.2 million sq ft. Of this, foreign firms accounted for 36 per cent of total absorption through GCC-related demand. The cities covered include Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.
US-based corporates dominated this activity, taking up around 71 million sq ft during the period. Colliers said India's office market had scaled up significantly in the post-pandemic years, recording consecutive demand peaks, largely driven by the expansion of GCCs. The consultant noted that these centres had transitioned from being primarily cost-focused back-office operations to innovation-led, globally integrated knowledge and research hubs.
Arpit Mehrotra, managing director for office services at Colliers India, indicated that foreign entities were expected to lease 35-40 million sq ft of office space annually to set up GCCs. He added that while technology-led demand from US firms could stabilise, companies from the UK and the European Union were likely to gain traction, particularly in engineering and manufacturing, BFSI and consulting.
Industry stakeholders said the scale and consistency of GCC demand signalled a structural shift in India's office market rather than a short-term cycle. Madhusudhan G, CMD of Sumadhura Group, said projections suggesting GCCs could contribute up to half of India's office demand pointed to a long-term transformation. He added that developers would need to recalibrate their strategies towards Grade A+ assets, efficient and scalable floor plates, strong sustainability credentials and work environments suited to hybrid operations.
The growing role of flexible and managed workspaces has also become evident. Shesh Rao Paplikar, founder and CEO of BHIVE Workspace, said the trend reflected global companies confidence in India's talent pool and business ecosystem, with many foreign firms opting for managed flexible spaces while setting up GCCs.
Executives from workspace operators said the GCC landscape was becoming more diversified. Manas Mehrotra of 315Work Avenue noted that beyond technology and BFSI, sectors such as retail, aerospace and life sciences were expanding their GCC footprint. He added that this demand was increasingly extending to Tier-2 cities, supported by lower operating costs, broader labour pools and improving digital infrastructure.
In the past calendar year alone, foreign firms leased 29.2 million sq ft of office space, accounting for 41 per cent of total gross leasing across the seven cities. Colliers expects GCCs to contribute 40-50 per cent of overall office demand in the coming years, underlining their growing influence on India's commercial real estate market.
Source - PTI
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