GCCs to drive 45-50% of India's Grade A office demand by 2027: Colliers
Synopsis
GCCs are no longer just filling office towers — they are reshaping India's entire commercial real estate landscape. With 45–50% of Grade A leasing demand projected for 2026–27 and BFSI volumes nearly tripling since 2021, the shift from back-office to AI-native innovation hubs marks a structural upgrade that Bengaluru and Hyderabad are leading, but no longer monopolising.
Key Takeaways
GCCs are projected to account for 45–50% of India's Grade A office leasing demand in 2026 and 2027 , per a Colliers report.
Annual GCC leasing is forecast at 35–40 million square feet over the next two years.
Since 2021 , GCCs have absorbed 118 million sq ft across India's top seven cities, representing 37% of total office demand.
BFSI leasing volumes nearly tripled between 2021 and 2025 ; engineering and manufacturing leasing grew more than 2.5 times .
Bengaluru and Hyderabad account for over 60% of cumulative GCC leasing, though Chennai , Pune , Mumbai , and Delhi-NCR are gaining ground.
Emerging models — AI-native GCCs , nano centres, and the 'hub-plus-one' Tier-II strategy — are expected to define the next growth phase.
Global Capability Centres (GCCs) are on track to account for 45–50 per cent of India's Grade A office leasing demand in 2026 and 2027, with annual leasing projected at 35–40 million square feet, according to a report released by Colliers on 25 July 2025. The findings underscore India's deepening role as a global innovation hub, with GCCs increasingly driving not just real estate absorption but also high-value technology functions.
Scale of GCC Expansion
Since 2021, GCCs have leased approximately 118 million square feet of Grade A office space across India's top seven cities, representing 37 per cent of total office demand over the period. In the first half of 2026 alone, GCCs absorbed 16.6 million square feet, contributing 46 per cent of total Grade A office space uptake — a sign that momentum is accelerating rather than plateauing.
Beyond Back-Office: The Strategic Shift
The Colliers report notes that GCCs in India have moved well beyond traditional back-office and support functions. They now serve as strategic hubs for artificial intelligence (AI), engineering, analytics, research and development (R&D), and digital transformation. Arpit Mehrotra, Managing Director, Office Services, Colliers India, said India has 'firmly established itself at the epicentre of GCC-led innovation, combining talent superiority, cost arbitrage and technological prowess with policy support and a favourable business environment.' He added that multinational corporations are expected to keep expanding their capability centres in India, with AI-led innovation likely to remain a primary demand driver.
Sector and City Breakdown
Technology remained the dominant sector, accounting for 39 per cent of cumulative GCC leasing since 2021. However, diversification is accelerating: the banking, financial services and insurance (BFSI) sector contributed 22 per cent of GCC leasing during the same period, with BFSI volumes nearly tripling between 2021 and 2025. Engineering and manufacturing accounted for 16 per cent, with leasing volumes growing more than 2.5 times over the period.
Geographically, Bengaluru and Hyderabad together accounted for more than 60 per cent of total GCC leasing since 2021. Demand is broadening, with Chennai, Pune, Mumbai, and Delhi-NCR seeing rising interest from multinationals establishing new capability centres.
Emerging Trends Shaping the Next Phase
The report highlights several structural shifts expected to define GCC growth going forward: the rise of AI-native GCCs, the proliferation of nano and mid-sized centres, and the 'hub-plus-one' strategy — where companies pair a primary metro presence with operations in Tier-II and Tier-III cities. This geographic diversification could gradually reduce the concentration risk currently centred on Bengaluru and Hyderabad.
With annual leasing demand forecast to hold at 35–40 million square feet through 2027, India's GCC story is entering a phase defined less by volume and more by strategic depth — and the office market is being reshaped accordingly.
Point of View
But until anchor multinationals actually commit leases outside the two metros, it remains a trend on paper. More telling is the BFSI surge — nearly tripling in four years signals that this is not a tech-sector story anymore, and that makes India's GCC base structurally more resilient to any single sector's slowdown. The real question is whether state governments beyond Telangana and Karnataka can build the talent pipelines and infrastructure to capture the next wave before it concentrates again.
NationPress
24 Jul 2026
Frequently Asked Questions
What share of India's office space demand will GCCs drive by 2027?
According to a Colliers report, GCCs are expected to account for 45–50% of India's Grade A office leasing demand in 2026 and 2027, with annual absorption projected at 35–40 million square feet.
Which cities are leading GCC office leasing in India?
Bengaluru and Hyderabad together account for more than 60% of cumulative GCC leasing since 2021. Chennai, Pune, Mumbai, and Delhi-NCR are seeing growing interest from multinationals and are expected to gain a larger share going forward.
Which sectors beyond technology are driving GCC growth?
While technology leads with 39% of cumulative GCC leasing since 2021, the BFSI sector has emerged as a major driver, contributing 22% of leasing and nearly tripling its volumes between 2021 and 2025. Engineering and manufacturing leasing grew more than 2.5 times over the same period.
What new trends are shaping the next phase of GCC expansion in India?
The Colliers report points to AI-native GCCs, the rise of nano and mid-sized centres, and the 'hub-plus-one' strategy — where companies anchor in a major metro and extend operations into Tier-II and Tier-III cities — as the key trends expected to define GCC growth beyond 2026.
How much Grade A office space have GCCs leased in India since 2021?
GCCs have leased approximately 118 million square feet of Grade A office space across India's top seven cities since 2021, accounting for 37% of total office demand over the period.
