New Delhi, July 24: The demand for office space in India is projected to see the Global Capability Centers (GCC) account for nearly 50% of the total share within the next two years. This shift is expected to further solidify India’s position as a global innovation hub, according to a report released on Friday.
The Colliers report estimates that the GCC’s share of total Grade-A office space leasing demand in India will range between 45-50% during 2026 and 2027. During this period, annual leasing could reach between 35 to 40 million square feet.
Since 2021, GCCs have leased approximately 118 million square feet of Grade-A office space across seven major cities in India, representing 37% of the total office space demand during this timeframe.
In just the first half of 2026, GCCs leased 16.6 million square feet of Grade-A office space, accounting for 46% of the total Grade-A office space leased.
The report highlights that GCCs in India are no longer limited to traditional back-office operations. They have evolved into strategic centers for artificial intelligence (AI), engineering, analytics, research and development (R&D), and digital transformation.
Arpit Mehrotra, Managing Director of Office Services at Colliers India, stated, “India has firmly established itself as a global center for GCC-based innovation, thanks to its talent pool, cost efficiency, technological capabilities, policy support, and favorable business environment.”
He added that multinational companies will continue to expand their capability centers in India, with AI-driven innovation being a major driver of office space demand.
Sector-wise, the technology sector has contributed the most to GCC leasing, accounting for 39% since 2021. However, the report also indicates a rapid diversification in demand. The banking, financial services, and insurance (BFSI) sector accounted for 22%, while the engineering and manufacturing sectors contributed 16%.
Between 2021 and 2025, leasing in the BFSI sector nearly tripled, while leasing in the engineering and manufacturing sectors increased by over 2.5 times.
In terms of cities, Bengaluru and Hyderabad have led the GCC market, together accounting for over 60% of total leasing since 2021. However, demand is expanding rapidly, with multinational companies showing increasing interest in establishing new capability centers in Chennai, Pune, Mumbai, and Delhi-NCR.
The report notes that AI-native GCCs, nano and mid-sized GCCs, and the ‘hub-plus-one’ strategy will shape the next phase of growth for the GCC sector, extending operations into Tier-2 and Tier-3 cities in the coming years.
Leave a Comment