Will GCC Expansion Fuel 40% of India's Office Demand by FY27?
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Synopsis
A recent report reveals that global capability centres are set to significantly impact India's office market, leasing 50-55 million square feet by FY2027. This growth, driven by competitive costs and talent availability, positions India as a prime destination for global firms. Explore how this trend will shape the future of commercial real estate in India.
Key Takeaways
- GCCs to lease 50–55 million sq ft by FY27.
- 40% of India's office demand will come from GCCs.
- GCC growth to rise from 1,700 to over 2,500 by 2030.
- Prime office rentals in India are $1-$2 per sq ft.
- Increasing focus on green-certified office spaces.
New Delhi, Oct 16 (NationPress) According to a recent report, global capability centres (GCCs) are projected to lease an additional 50–55 million square feet of Grade A office space by FY2027, which would account for approximately 40 percent of the overall demand within India's top six office markets.
It is anticipated that the number of GCCs will increase from around 1,700 to over 2,500 by 2030, leading to the generation of over $100 billion in revenue and enhancing workforce capacity by 1.5-2 times, as per the rating agency ICRA.
The unique blend of cost-effectiveness, a robust talent pool, and supportive policy frameworks is drawing global businesses to set up and grow their strategic operations in India, the report indicated.
As GCCs transition into hubs for innovation and research and development, ICRA forecasts ongoing leasing activity, particularly in tech-enabled and green-certified office environments.
Moreover, various states are rolling out targeted subsidies, training incentives, and infrastructure enhancements to further boost GCC investments.
In FY25, GCCs achieved a record leasing of 24 million sq ft of Grade A office space across regions such as Bengaluru, Chennai, Delhi NCR, Hyderabad, MMR, and Pune. The proportion of Grade A office space in overall leasing jumped to 37 percent from 27 percent in FY2023.
From FY2023 to FY2025, Bengaluru dominated GCC office leasing with a substantial 40 percent share, followed by Hyderabad at 18 percent and Chennai at 16 percent. US-based GCCs have accounted for 70 percent of absorption since 2021, with companies from the UK, Germany, France, Japan, Australia, and Singapore expanding their footprints. Notably, around 65 percent of new leasing in GCCs occurred in green-certified integrated tech parks.
While technology sectors continue to be the primary drivers of GCC demand, industries such as engineering and manufacturing, along with banking, financial services, and insurance (BFSI), are rapidly increasing their presence, as reported. These sectors have nearly doubled their leasing share in the five years leading up to FY 2025.
ICRA's findings reveal that India's prime office rentals, which range from $1-$2 per sq. ft. per month, are the most competitive globally, positioning the country as a highly attractive destination for multinational corporations.
Point of View
I can confidently state that the growth of global capability centres in India represents a significant opportunity for the nation. This expansion not only reflects India’s potential as a hub for multinational operations but also underscores the importance of strategic investments in infrastructure and talent development. The emphasis on sustainability and innovation in office spaces is crucial for ensuring a competitive edge in the global market.
NationPress
01/12/2025
Frequently Asked Questions
What is the projected office space demand from GCCs in India by FY27?
GCCs are expected to lease an additional 50–55 million square feet of Grade A office space, representing about 40% of the total demand in India's major office markets by FY27.
How many GCCs are anticipated in India by 2030?
The number of GCCs in India is expected to rise from approximately 1,700 to over 2,500 by 2030.
What sectors are driving GCC demand in India?
While technology occupiers are the primary drivers of GCC demand, sectors like engineering & manufacturing, and banking, financial services & insurance (BFSI) are rapidly expanding their footprint.
How competitive are India's office rental prices?
India's prime office rentals are among the most affordable globally, ranging from $1-$2 per sq. ft. per month.
What role do green-certified office spaces play in GCC leasing?
Approximately 65% of new leasing in GCCs took place in green-certified integrated tech parks, highlighting a shift towards sustainable office environments.
