Which Southern Cities are Leading GCC Office Leasing?

Mumbai, May 20 (NationPress) The leading three southern cities in India – Bengaluru, Hyderabad, and Chennai – have taken the forefront in Global Capability Centre (GCC) office space leasing during the first quarter (January-March) of 2025, capturing a remarkable 64 percent of the total market share, as highlighted in a report issued on Tuesday.

In recent years, GCCs have significantly increased their footprint in India’s commercial real estate sector, a trend that has been bolstered by government initiatives introduced in the Union Budget.

The demand for office space in these cities is rapidly rising, driven by both new GCC entrants and existing companies looking to expand. During the first quarter of 2025, GCCs leased approximately 8.35 million square feet of office space across the top seven cities in India, according to the analysis by real estate consultancy Anarock.

Peush Jain, Managing Director at Anarock Group, stated, "GCCs in Bengaluru, Chennai, and Hyderabad collectively accounted for around 5.34 million square feet of leased office space in Q1 2025, with Delhi-NCR following closely behind at 1.95 million square feet."

In terms of office space leasing in the top seven cities during Q1, GCCs made up nearly 43 percent of the total market. This marks a significant increase from 4.87 million square feet leased in Q1 2024, reflecting a 72 percent annual rise in their absorption of office space, according to Jain.

City-specific data reveals that Bengaluru leads the GCC leasing sector in Q1 2025 with a 40 percent share, translating to about 3.3 million square feet. Following it is Delhi-NCR with a 23 percent share (nearly 1.91 million square feet) and Chennai with 1.22 million square feet, equivalent to a 15 percent share.

Examining sector-wise distribution, the IT/ITeS sector commanded the largest portion, representing 35 percent of the overall GCC leasing, followed by BFSI at 22 percent, and manufacturing and industrial sectors at 13 percent.

E-commerce accounted for 6 percent, and consultancy services made up 5 percent of the total leasing. The remaining 19 percent was attributed to various other sectors. While IT/ITeS maintains its dominance in GCC leasing, sectors such as BFSI and manufacturing are also making notable strides, the report indicates.

"As a result of India's growing economic prominence over the past two to three years, GCCs are expanding not only in the top seven cities but also in several Tier 2 and 3 locations, including Ahmedabad, Kochi, and Coimbatore. This trend is fueled by multiple factors, such as an expanding skilled workforce outside major metros, cost advantages, favorable government policies, and ongoing infrastructure development in these emerging cities," Jain elaborated.