This trend is rapidly reshaping India’s flex office market, pushing operators to upgrade quality, location, and sustainability standards.

What Are GCCs and Why Do They Matter?

GCCs are global companies’ offshore centres that handle critical business functions such as IT, R&D, finance, and operations. Over the past few years, India has emerged as a top destination for these centres due to skilled talent, cost efficiency, and a large domestic market.

As of 2025:

• India hosts 1,750+ GCC companies
• Operating from nearly 3,800 locations
• GCCs accounted for over 40% of total office space demand in the last two years

Their scale and long-term presence make GCCs one of the most influential occupiers in India’s office market today.

Flex Offices Become the Preferred Choice

Flexible workspaces — which offer plug-and-play offices with shorter leases and scalability — are increasingly preferred by GCCs, especially during expansion and pilot phases.

Key highlights:

• 475+ flex centres currently host GCC bases
• These centres are spread across major Tier-1 cities
• Flex operators benefit from GCCs’ need for speed, flexibility, and enterprise-grade infrastructure

This growing reliance has made GCCs a driving force behind the premiumisation of flex offices.

GCCs Push Green and Grade-A Office Adoption

Vestian’s data shows a clear quality gap between overall flex stock and GCC-occupied flex spaces:

• 42% of all flex centres are green-certified
• 62% of GCC flex bases operate from green-certified centres

Similarly:

• 69% of flex centres are located in Grade-A buildings
• 85% of GCC flex bases operate from Grade-A buildings

In simple terms, GCCs demand better buildings than the average flex user, forcing operators to upgrade.

Which Cities Are Leading the Green Flex Trend?

City-wise data shows strong adoption of premium flex spaces by GCCs:

• Mumbai: 98% of GCC flex bases are in Grade-A buildings
• Hyderabad: 94% in Grade-A, 72% in green-certified centres
• NCR: 81% of GCC flex bases operate from green-certified centres
• Bengaluru: Leads in absolute flex stock and GCC presence

Interestingly, Kolkata has the highest share of green-certified flex centres overall, but GCC adoption there remains limited compared to larger IT hubs.

Why GCCs Prefer Peripheral Business Districts

Rather than expensive central business districts, GCCs are increasingly choosing Peripheral Business Districts (PBDs).

Why?

• Better connectivity
• Lower rentals
• Larger office campuses
• Easier scalability for future expansion

As a result:

• 77% of flex space occupied by GCCs is located in peripheral zones
• Compared to 61% of overall flex stock

This shift is helping develop new office corridors across major cities.

India’s Flex Office Market Is Growing Fast

India’s flex workspace market has scaled rapidly:

• 82.3 million sq ft of flex space
• Spread across 1,400 centres
• Top 10 operators control 67% of total stock

City-wise flex stock share:

• Bengaluru: 33.2%
• NCR: 20.4%
• Pune: 14.7%
• Hyderabad: 12.4%

With rising GCC demand, India’s flex stock is projected to cross 100 million sq ft by 2026.

What This Means for India’s Office Market

Experts believe flex operators will play a central role in India’s GCC growth story.

According to Vestian CEO Shrinivas Rao, flex spaces offer global companies:

• Faster market entry
• Operational flexibility
• Enterprise-grade and compliant infrastructure

With India’s economy expected to grow over 7% in FY26, and global companies increasingly prioritising sustainability and agility, flex workspaces are well positioned to become a core part of India’s office ecosystem, not just a temporary solution.

Also Read: Flex Office Stock to Cross 100 Million Sq Ft by 2027; Penetration to Exceed 10%

The post Why Global Companies Are Choosing Green Offices in India’s Flex Workspaces appeared first on Square Feat India.

In Q2 2024 alone, approximately 13 million square feet of office space was leased in green-certified buildings across the top six cities, marking a significant 24% year-over-year increase and an impressive 82% share of total leasing activity for the quarter. Bengaluru and Mumbai emerged as leaders in this trend, together accounting for over 50% of the green-certified leases in the quarter. Notably, about 60% of these leases were in relatively new developments constructed in the past five years.

Growing Green Certification Among Occupiers

The shift towards green office spaces is driven by an increasing awareness among corporate occupiers of the role that sustainable buildings play in addressing climate change. Prominent green certifications such as LEED, GRIHA, and WELL are becoming more sought after as they offer benefits like lower operational costs, improved indoor air quality, and enhanced employee productivity.

“Over the last few quarters, developers, investors, and occupiers in the office market have increasingly embraced the adoption of sustainable elements in their portfolios. With 13 million square feet of leasing in green-certified buildings in Q2 2024, a significant 82% of occupiers were inclined towards green-certified buildings. This reflects occupiers’ strong commitment to align their sustainability goals with the broader sustainability targets of the country,” said Arpit Mehrotra, Managing Director, Office Services, India at Colliers.

Sector-Specific Trends

Technology and Engineering & Manufacturing firms are at the forefront of this green shift, with about 80% of their leasing activity in green-certified buildings since 2023. Additionally, 62% of flexible workspace providers also prefer green-certified locations. The technology sector alone accounted for 27% of the green-certified leasing, followed closely by Engineering & Manufacturing and BFSI sectors.

City-wise data highlights:

• Bengaluru: 68% of leasing in green-certified buildings, with Engineering & Manufacturing leading.
• Chennai: 79% of leasing in green-certified buildings, predominantly by the Technology sector.
• Delhi NCR: 74% share, with Technology firms driving the trend.
• Hyderabad: 76% share, largely due to Technology firms.
• Mumbai: 72% share, with BFSI sector leading.
• Pune: 71% share, with BFSI sector prominent.

Expansion of Green Office Stock

The green office stock is set to grow substantially. As of June 2024, approximately 67% of Grade A office buildings in the top six cities were green-certified. With nearly 70% of new Grade A office completions in Q2 2024 being green-certified, the trend is expected to continue. Over the next 2-3 years, the green-certified Grade A office stock is projected to exceed 600 million square feet.

“With increased inclination among occupiers for green-certified buildings, several Grade A developers are boosting their sustainable offerings. During Q2 2024, nearly 70% of new supply was green-certified. Developers are also retrofitting older office buildings to meet green standards. About 300-350 million square feet of commercial building stock older than 10 years have the potential for refurbishment, further expanding the green-certified office inventory,” noted Vimal Nadar, Senior Director and Head of Research at Colliers India.

The surge in green office space leasing and development reflects a broader shift towards sustainability in India’s commercial real estate sector, highlighting a significant step towards meeting environmental, social, and governance (ESG) goals.

Also Read: Industrial & warehousing demand remains healthy with about 13 mn sq ft of leasing in H1 2024

The post Surge in Green Office Spaces: Bengaluru and Mumbai Lead as Demand Soars in H1 2024 appeared first on Square Feat India.