India’s commercial real estate sector witnessed a significant boost in FY2024-25, driven largely by the rapid expansion of Global Capability Centres (GCCs). According to data from real estate consultancy Vestian, GCCs leased 31.8 million square feet of office space across seven major cities during the fiscal year—a 24% increase over the previous year. This surge underscores India’s growing strategic importance as a global operations hub, bolstered by a skilled workforce, cost efficiency, and a conducive business environment. With their expanding footprint, GCCs accounted for 42% of total office space absorption nationwide and are poised to further reshape India’s commercial property landscape.
GCCs Continue to Power India's Office Market
Global Capability Centres—offshore hubs set up by multinational corporations to deliver strategic business functions—have emerged as the dominant force in India's office leasing market. Over the past two years, GCCs have consistently contributed more than 40% to total office space absorption, reflecting their central role in reshaping corporate real estate demand in the country.
According to Vestian, GCCs accounted for 42% of pan-India office leasing in FY2024-25, up slightly from 41% in the previous year. This growth is driven by long-term cost optimization goals, the availability of highly skilled talent, and India’s expanding digital and physical infrastructure.
Shrinivas Rao, CEO of Vestian, emphasized the pivotal role GCCs play in the commercial real estate sector, noting, “GCCs have been instrumental in sustaining and growing India’s office market. The ecosystem here supports scalability, efficiency, and talent availability—all key drivers for global companies."
City-Wise Breakup: Bengaluru Remains the Epicentre
Among India’s major metros, Bengaluru maintained its dominance as the top destination for GCC expansion. The city saw 12.43 million square feet of office space leased for GCC operations in FY25—up from 8.34 million square feet in FY24. This 49% year-on-year surge reflects Bengaluru’s robust digital infrastructure, strong tech talent, and well-developed business parks.
Mumbai followed with a notable jump, where GCC-related office absorption rose from 1.36 million square feet to 3.68 million square feet, registering a nearly 171% increase. The city’s resurgence in the GCC space is attributed to its growing financial services sector and upgraded commercial real estate offerings.
Other metro cities like Hyderabad, Pune, Chennai, Gurugram, and Noida have also reported strong leasing activity, as global firms diversify their footprints across tier-1 locations to access regional talent pools and mitigate operational risks.
Sectoral Diversity Fuels GCC Expansion
While the IT and ITeS sectors have traditionally dominated GCC activity, a more diversified landscape is now taking shape. The latest data reveals significant contributions from sectors such as:
- Banking, Financial Services and Insurance (BFSI)
- Healthcare and Life Sciences
- Engineering and Manufacturing
- Consulting and Professional Services
This broadening sectoral base highlights the evolving role of GCCs—from traditional back-office units to value-driven centers for innovation, analytics, product design, and strategic planning.
As global firms seek to digitize operations and integrate advanced technologies like AI, machine learning, and automation into their core functions, India’s GCCs are rapidly emerging as mission-critical assets rather than cost arbitrage centers.
Developers and REITs: Key Enablers in the Ecosystem
India’s major commercial developers continue to play a pivotal role in supporting GCC expansion by delivering Grade A office spaces, integrated tech parks, and future-ready campuses.
Leading developers such as DLF Ltd, Embassy Group, Prestige Group, RMZ Corp, and Tata Realty & Infrastructure Ltd remain central to the real estate supply pipeline. Their projects, often backed by institutional capital and global best practices, are preferred by multinational corporations seeking long-term leases and operational continuity.
Additionally, real estate investment trusts (REITs) like Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust have emerged as major players, offering institutional-grade assets with high occupancy and sustainability ratings—key parameters for global tenants.
What Lies Ahead: Continued Momentum and Evolving Needs
The trajectory of GCC-led leasing is expected to remain strong, underpinned by macroeconomic stability, continued policy support, and India’s unique value proposition in the global services ecosystem.
With digital transformation gaining pace, GCCs are moving up the value chain—from transactional processing to strategic enablement and innovation leadership. As this evolution continues, demand for office spaces that offer flexibility, digital integration, and ESG compliance is expected to grow.
Rao of Vestian summed up the outlook, stating, “India’s attractiveness as a GCC destination is not transient. The depth of talent, business-friendly reforms, and proven delivery capabilities ensure that the country will remain indispensable to global corporations seeking efficiency and resilience.”
Conclusion: India’s Office Market Finds a Growth Engine in GCCs
The expansion of Global Capability Centres in India represents more than just a real estate trend—it is a structural shift in how global enterprises view their operations. From cost centers to centers of excellence, GCCs are evolving, and with them, India’s cities are transforming into strategic global hubs. As firms reconfigure supply chains and operational footprints for resilience and innovation, India’s commercial real estate market stands at the heart of this global recalibration.
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