Archive · 24 Jul 2026
GCCs to Drive Half of India's Office Space Demand by 2027
Global Capability Centres (GCCs) are expected to drive nearly half of India's office space demand by 2027.
These centres, which handle tasks like artificial intelligence, engineering, and research, have already leased a lot of office space in cities like Bengaluru and Hyderabad.
The technology sector is the biggest contributor, but other sectors like banking and manufacturing are also growing.
Experts believe India's talent and business-friendly policies make it a great place for these centres.
However, some worry about potential oversupply and market saturation.
GCCs to account for 45-50% of India's Grade A office leasing demand in 2026-2027.
Annual leasing projected at 35-40 million square feet.
Technology sector contributes 39% of cumulative demand since 2021.
BFSI and engineering sectors show significant growth in leasing.
Bengaluru and Hyderabad dominate GCC leasing, accounting for over 60% of total leasing since 2021.
- Who
- Global Capability Centres (GCCs) and multinational corporations
- What
- GCCs driving office space demand in India
- When
- 2026 and 2027
- Where
- India, primarily Bengaluru and Hyderabad
- Why
- To leverage India's talent, cost arbitrage, and technological prowess
Pro-Growth Perspective
Cautious Perspective
Economic Impact
Pro-Growth Perspective
GCCs will significantly boost India's office space demand, driving economic growth and job creation.
Cautious Perspective
Rapid expansion may lead to oversupply and potential market saturation in certain regions.
Sector Diversification
Pro-Growth Perspective
Diversification into sectors like BFSI and engineering will ensure sustainable growth.
Cautious Perspective
Over-reliance on a few sectors could pose risks if market conditions change.
- Projected GCC Office Leasing
- 35-40 million square feet annually in 2026-2027
- Top Cities for GCC Leasing
- Bengaluru and Hyderabad (over 60% of total leasing since 2021)
- Largest Sector Contributor
- Technology (39% of cumulative demand since 2021)
- BFSI Sector Growth
- Leasing volumes nearly tripled between 2021 and 2025
- Engineering and Manufacturing Growth
- Leasing grew more than 2.5 times since 2021
