Could GCCs Drive Up to 50% of India's Office Demand?
Synopsis
A recent report indicates that Global Capability Centres (GCCs) may account for as much as 50% of India's office space demand, primarily led by US firms. With a steady rise in leasing activity and potential growth in various sectors, this trend highlights a significant shift in the Indian office market landscape.
Key Takeaways
GCCs may account for 50% of India’s office space demand.
US companies lead GCC leasing activities.
Annual office uptake by GCCs could reach 35-40 million sq ft.
Growth in demand anticipated from EU and UK companies.
Trade agreements are expected to boost long-term demand.
Mumbai, Feb 19 (NationPress) Global Capability Centres (GCCs) are projected to represent as much as 50 percent of the demand for office space in India across the top seven markets, largely driven by the activities of US companies, according to a report released on Thursday.
The analysis from Colliers India indicates that US firms have made up nearly 70 percent of GCC leasing in India since 2020, with EU and UK businesses each holding an 8-10 percent share.
In the coming years, the annual uptake of Grade A office space by GCCs could reach between 35-40 million sq ft, which would constitute 40-50 percent of the overall office demand, the report highlights.
“While demand from technology-driven GCCs in the US may stabilize, we expect a growing interest from EU and UK companies, particularly in the engineering & manufacturing, BFSI, and consulting sectors,” stated Arpit Mehrotra, Managing Director of Office Services at Colliers India.
The report further notes that current trade agreements and tariff adjustments with the US, EU, and UK are likely to enhance long-term office demand across the technology, banking and financial services, engineering, and consulting fields.
Since 2020, GCCs have driven approximately 117 million sq ft, or 38 percent, of the cumulative 310 million sq ft office space demand in India.
The report shows a steady rise in GCC demand, with space uptake increasing from around 16 million sq ft in 2020 to nearly 30 million sq ft by 2025.
“GCCs will remain a key factor in shaping India’s office space demand, fostering the ongoing expansion and diversification of the occupier base,” remarked Vimal Nadar, National Director and Head of Research at Colliers India.
Nadar also noted that global trade tensions have eased, and recent bilateral agreements between India and its primary trade partners will facilitate growth in essential demand drivers for the Indian office market.
Moreover, the availability of skilled talent and cost advantages are expected to continue fueling the expansion of capability centers in India, according to the real estate services firm.
aar/pk
Point of View
It is crucial to recognize the implications of the rising demand for office spaces driven by Global Capability Centres. This trend not only reflects the changing dynamics of our economy but also signifies India's growing importance in the global market. The nation stands at a pivotal moment where strategic partnerships and skilled talent can foster substantial growth.
NationPress
20 Jun 2026
Frequently Asked Questions
What are Global Capability Centres?
Global Capability Centres (GCCs) are specialized business units set up by multinational companies to support various functions such as technology, engineering, and finance.
How much office space demand will GCCs account for in India?
GCCs are projected to account for up to 50% of office space demand in India across the top seven markets.
Which companies are leading GCC leasing activity in India?
US firms dominate GCC leasing activity in India, accounting for nearly 70% since 2020, followed by EU and UK companies.
What sectors are expected to grow in GCC demand?
Growth is anticipated particularly in engineering & manufacturing, banking and financial services, and consulting sectors.
What factors are influencing the demand for office space in India?
Factors include trade agreements, availability of skilled talent, and cost advantages that make India an attractive destination for GCCs.
