India’s commercial real estate sector is poised for a major growth wave as Global Capability Centres (GCCs) expand aggressively, potentially driving up to half of the country’s total office space demand in the coming years, according to a new report by Colliers India.
The report highlights that multinational corporations—especially from the United States, Europe, and the United Kingdom—are increasingly using India not just as a cost-efficient outsourcing hub but as a strategic base for innovation, research, and advanced operations. This structural shift is expected to significantly boost leasing activity across India’s top seven office markets: Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, and Kolkata.
Strong Economic Tailwinds Supporting Growth
India’s macroeconomic outlook is reinforcing investor confidence. The International Monetary Fund recently revised the country’s 2026 GDP growth forecast upward from 6.1% to 6.3%, while projecting 6.5% growth for 2027. Analysts attribute this to robust domestic demand and progress on bilateral trade agreements with key economies such as the US, EU, UK, and France.
These agreements—covering tariff reductions, improved market access, and sector-specific policy easing—are expected to strengthen India’s export competitiveness and encourage foreign companies to scale up their operations locally. Sectors expected to benefit the most include:
- Technology & digital services
- Banking, Financial Services and Insurance (BFSI)
- Engineering & manufacturing
- Consulting and professional services
GCC Leasing on Track to Hit 40 Million Sq Ft Annually
According to Arpit Mehrotra, Managing Director, Office Services at Colliers India, GCC leasing could soon reach 35–40 million sq ft annually, accounting for 40–50% of total office demand.
Since 2020, GCCs have leased about 117 million sq ft, or roughly 38% of India’s total Grade A office absorption. Their annual uptake has nearly doubled—from about 16 million sq ft in 2020 to nearly 30 million sq ft in 2025—reflecting sustained expansion.
US-headquartered firms have dominated activity, contributing nearly 70% of GCC leasing since 2020. However, this dominance is expected to moderate as European and British firms expand their presence.
Distinct Regional Demand Patterns Emerging
The report identifies differing sector preferences among GCC investors:
- US companies: Technology-led demand (47%), followed by BFSI (21%)
- EU companies: Strongly anchored in engineering & manufacturing (~60%)
- UK companies: More diversified, led by BFSI (29%) and consulting (23%)
These trends indicate a broadening occupier mix, reducing reliance on a single sector and strengthening market resilience.
Trade Deals to Accelerate Office Expansion
Tariff reductions and market access provisions under proposed trade agreements are expected to spur corporate expansion. Examples cited include:
- Potential elimination of tariffs on US industrial goods
- EU tariff cuts on machinery, steel, chemicals, and pharmaceuticals
- Reduced auto duties under quota systems for multiple partners
Such measures could make India more attractive as both a manufacturing base and services hub, prompting multinational firms to establish or enlarge capability centres.
From Back Offices to Innovation Hubs
“GCCs will continue to anchor India’s office demand and support diversification of occupiers,” said Vimal Nadar, National Director and Head of Research at Colliers India. He added that while technology will remain a key driver, BFSI and engineering firms could together account for 40–50% of leasing demand in 2026.
This transformation reflects a broader shift: GCCs are no longer transactional support units but high-value hubs handling product development, AI, analytics, and engineering functions. India’s deep talent pool and cost advantages continue to reinforce its appeal as a global operations base.
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