Will India’s Office Leasing Income Increase by 10% in FY27 Due to IT-BPM and GCCs?
Synopsis
Discover how India’s office leasing sector is set for significant growth, driven by IT-BPM and GCCs. This analysis highlights the robust demand and occupancy trends that are shaping the commercial real estate landscape in the country. Stay ahead of the curve with insights into the future of office space rental income and market stability.
Key Takeaways
14-15 percent increase in rental inflow expected in FY26.
Occupancy projected to reach 87-88 percent in leading cities.
50-55 million square feet to be leased by GCCs by 2027.
GCCs' share in leasing expected to rise to 38-40 percent .
India's cost and talent advantages are driving demand.
New Delhi, Nov 27 (NationPress) The commercial office market in India is experiencing a remarkable surge in leasing activity, primarily driven by the Information Technology‑Business Process Management (IT‑BPM) sector, alongside significant expansions from Global Capability Centres (GCCs), according to a report released on Thursday.
The analysis from the rating agency ICRA predicts a robust absorption rate that is expected to propel a 14-15 percent increase in rental income and Net Operating Income (NOI) within the commercial office domain in FY26, followed by a projected 9-10 percent rise in FY27.
Occupancy levels in India's six major cities are anticipated to reach 87-88 percent in FY26 and FY27, up from 86 percent in FY25.
“The demand for office space continues to thrive, driven by both the IT‑BPM and Banking, Financial Services, and Insurance (BFSI) sectors. In light of global challenges such as policy tightening and trade restrictions in the US, leasing activities by GCCs in India have remained strong,” stated Anupama Reddy, Vice President and Co-Group Head at ICRA.
The report estimates that GCCs will occupy between 50-55 million square feet from April 2025 to March 2027, representing approximately 40 percent of the new office demand.
The continuous demand from GCCs and BFSI, along with India's competitive cost and talent advantages, is paving the way for a promising growth trajectory and stability in this sector, Anupama emphasized.
The proportion of GCCs in overall office leasing increased from 27 percent in fiscal 2022 to 35 percent in fiscal 2024 and is projected to reach 38-40 percent in fiscal years 2026 and 2027. India has emerged as a favored global center for capability centers due to its enduring value proposition, resilient tech infrastructure, abundant talent pool, and consistent policy backing, as highlighted in the report.
Point of View
I believe the current trends in India's commercial office sector reflect a strategic shift towards resilience and growth, particularly through the IT-BPM and GCCs. This evolution not only underscores the country's potential as a leading global hub but also highlights the importance of fostering talent and infrastructure to sustain this upward momentum.
NationPress
20 Jun 2026
Frequently Asked Questions
What is driving the growth of office leasing in India?
The growth is primarily driven by the IT-BPM sector and the expansion of Global Capability Centres (GCCs), which are significantly increasing demand for office space.
What is the projected increase in rental income for FY27?
The rental income is projected to grow by 9-10 percent in FY27.
How much space are GCCs expected to lease?
GCCs are expected to lease between 50-55 million square feet between April 2025 and March 2027.
What is the occupancy rate forecast for India’s major cities?
The occupancy rate is expected to improve to 87-88 percent in FY26 and FY27.
How has the share of GCCs in office leasing changed?
The share of GCCs in total office leasing has grown from 27 percent in fiscal 2022 to a forecasted 38-40 percent in fiscal 2026 and 2027.
