Global capability centres (GCCs) stage strong comeback with 40% share of office demand in 2025

Global capability centres (GCCs) are set to account for 40% of India’s total office space market in 2025, driven primarily by demand from technology firms. According to Colliers India’s report, GCCs in India: Building the Future of Global Enterprises, these centres are expected to lease 28 million sq. ft this year, contributing to nearly 100 million sq. ft of total space absorption since 2021 across the top seven cities. While technology GCCs continue to dominate leasing activity, accounting for 37% of cumulative demand, other sectors such as banking, financial services, and insurance (BFSI), along with engineering and manufacturing, have expanded rapidly, with their office space take-up rising three to four times between 2021 and 2025. Southern cities, particularly Bengaluru, Hyderabad, and Chennai, remain the leading hubs, together accounting for over 60% of total GCC demand during this period. tier II cities are also emerging as attractive destinations for cost-sensitive occupiers, further broadening the market.

The leasing trend highlights the evolution of GCCs into innovation-driven, domain-specialised, and technologically integrated centres. BFSI and engineering & manufacturing sectors are expected to contribute 40-50% of leasing in 2025, with BFSI expanding into risk management, digital banking, and fintech, and engineering & manufacturing focusing on Research and Development (R&D) and product engineering. Chennai is projected to witness 5.3 times jump in leasing. At the same time, Mumbai, Pune, and Kolkata cater to front-end financial services, support operations, and regional technology presence, respectively. Occupiers are increasingly seeking sustainable, premium Grade A spaces with flexible configurations, supporting future-ready work environments. Colliers projects that India’s office leasing demand will exceed 60 million sq. ft during 2026-27, anchored by GCCs, positioning the country as a global hub for capability centres while reinforcing its competitive edge in talent, technology adoption, and cost arbitrage.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.