GCCs Capture 51% of India Office Leasing in 14,004 Deals
Updated
Updated · The Hindu · Jul 17
GCCs Capture 51% of India Office Leasing in 14,004 Deals
1 articles · Updated · The Hindu · Jul 17
Summary
An IIM Bangalore-CRE Matrix survey tracked 14,004 GCC lease transactions over five years and found they accounted for 51% of India’s total office leasing volume by area.
That dominance reflects multinationals’ shift to wholly owned Global Capability Centres, which keep staff, operations and intellectual property in-house while expanding higher-value work such as R&D, AI and semiconductors.
Bengaluru leads the buildout with more than 1,080 GCCs, followed by Hyderabad with 515 and the National Capital Region with over 490, underscoring how a few cities are reshaping office demand and hiring.
Rising rents in Bengaluru, Hyderabad and Pune are already pushing some expansion into Tier-II cities such as Coimbatore, Ahmedabad, Vadodara and Kochi.
India’s appeal still rests on talent, tax breaks and lower costs: the Economic Survey cited SEZ tax holidays, while a revised safe-harbour margin of 15.5% has improved ease of doing business.
Are India's tech hubs becoming true innovation engines or just gilded cages for foreign-owned intellectual property?
With a crippling AI talent shortage and strained cities, is India's celebrated tech boom heading towards an inevitable collapse?
India's Office Market Hits Record 27.4 Million Sq. Ft. in H1 2026, Driven by GCC Expansion and Green Leasing Surge
Overview
India's office market saw robust growth in the first half of 2026, with net office absorption rising by 2% to 27.44 million sq. ft. Bengaluru and Hyderabad led this surge, together driving nearly half of the total leasing activity. Bengaluru alone recorded a 26% jump in net leasing, while Hyderabad grew by 24%. Flexible workspace operators became the largest occupier segment, accounting for 27% of leasing in Q2 2026. Alongside technology and BFSI firms, these occupiers dominated the market, highlighting strong demand and a dynamic shift in India's commercial real estate landscape.