Global capability centres (GCCs) expansion to power 40% of India's office demand by FY27: Report
- IBEF
- October 21, 2025
Global capability centres (GCCs) in India are poised for significant expansion, with an estimated 50-55 million square feet of additional Grade A office space expected to be leased in FY27, accounting for around 40% of total demand across the country’s top six office markets, according to ICRA. The number of GCCs is projected to rise from 1,700 to over 2,500 by 2030, generating more than Rs. 8,80,400 crore (US$ 100 billion) in revenue and expanding workforce capacity by 1.5-2 times. India’s cost competitiveness, deep talent pool, and supportive policies are driving this growth, while tech-enabled and green-certified office spaces are emerging as preferred locations. States are further encouraging investments through subsidies, training incentives, and infrastructure support.
GCCs already leased a record 24 million sq. ft. of Grade A office space in FY25, up from a 27% share in FY23 to 37% of total leasing. Bengaluru accounted for 40% of GCC office leasing, followed by Hyderabad (18%) and Chennai (16%). United States (US)-based firms have contributed 70% of absorption since 2021, with the United Kingdom (UK), Germany, France, Japan, Australia, and Singapore also expanding their footprint. While technology remains the largest driver of demand, sectors such as engineering & manufacturing and BFSI are rapidly growing their presence. With prime office rentals at just Rs. 88.04-176.08 (US$ 1-2) per sq. ft. per month, India remains one of the most cost-effective destinations globally for multinational firms.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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