The GCC Shift Redefines India’s Office Market

The story of Global Capability Centres (GCCs) has entered a decisive new phase. What began as a cost-arbitrage model, with global companies locating support and back-office functions in India, has evolved into something far more consequential. GCCs are now emerging as strategic engines driving technology, product development, research and growth, analytics and global decision-making.

That transformation is increasingly visible in India’s commercial real estate market. According to Anuj Puri, chairman, Anarock Group, in the first half of 2026, GCCs leased 19.2 million sq.ft., accounting for 45% of all Grade-A office space taken up across the country’s top seven cities. Their leasing grew 22% year-on-year, comfortably ahead of the 11% growth in overall office absorption nationally.

The significance of this demand goes beyond space absorption. As GCC mandates grow more sophisticated, companies increasingly seek workplaces that support specialised talent, advanced technology, collaboration, innovation and employee wellbeing. Shailendra Sharma, chairman, Renox Group, says, “GCC demand now spans BFSI, engineering research & development, technology services, healthcare, life sciences and customer experience. As GCCs become strategic hubs for innovation and business transformation, demand for Grade-A offices is rising. GCCs leased over 31 mn. sq.ft. in 2025, nearly 40% of office leasing.”

Dr Niranjan Hiranandani, chairman, Hiranandani Communities, is of the view that the GCC story has moved well beyond the traditional back-office model. India’s advantage, he stresses, has evolved from talent and cost competitiveness into a broader proposition built around technology expertise, product innovation and business collaboration. This shift is strengthening India’s position as a global business destination while simultaneously raising the bar for its commercial real estate.

Also says Anmol Patel, director, Ganesh Housing Limited that the rise of GCCs marks a shift from cost-efficient operations to a global centre for technology, innovation and enterprise leadership.

From Back Office To Business Engine

The scale of India’s GCC ecosystem underscores its growing structural impact on real estate. With over 2,000 GCCs employing more than 1.9 mn. professionals, the sector leased over 100 mn. sq.ft. between 2022 and 2025, accounting for 35% of total office leasing. Annual take-up reached around 33 mn. sq.ft. in 2025.

Srinivas Moramchetty, director, sales & marketing, Sumadhura Group, says, “GCCs are increasingly innovation hubs spanning AI, engineering, digital capabilities, R&D and product ownership, creating demand for adaptable workplaces that support collaboration, technology integration and specialised talent.”

More importantly, GCCs are evolving into innovation hubs, driving AI, engineering, cybersecurity, analytics, R&D, product development and, increasingly, global decision-making. This is reshaping occupier expectations from commercial space. “The office is increasingly being viewed as an enabler of business performance,” says Hardeep Dayal, president - commercial leasing, Bhartiya Centre of Information Technology (BCIT). As workplaces bring together talent, technology, collaboration and employee experience, he argues, GCCs are redefining what businesses expect from commercial space. Shivam Agarwal, VP – strategy, Sattva Group, says, “Global enterprises are increasingly building strategic capabilities here, reshaping commercial real estate into an ecosystem that brings together talent, technology and collaboration.”

Sam Chopra, president and country head, eXp Realty India, enlightens, “As global companies place technology, product, analytics and decision-making functions here, the workplace is becoming an extension of the business itself, raising expectations for connectivity, infrastructure and flexibility.”

The shift is already particularly pronounced in the leading GCC markets. GCCs account for around 70% of Bengaluru’s office demand, 55% in Chennai and 48% in Hyderabad, according to Puri.

Bengaluru remains the country’s leading GCC market, but the opportunity is spreading across Mumbai, Hyderabad, Chennai, Pune and Delhi-NCR, while emerging cities are increasingly entering the conversation.

The New Office Brief

For developers, the GCC boom is therefore not simply a volume story. It is a specification story. Large global companies typically carry standardised requirements across their international operations. When they establish a capability centre in India, they often expect the same quality, specifications and workplace experience as their global headquarters. “That has created significant demand for built-to-suit developments,” says Harsh Parikh, partner, Khaitan & Co. “For developers, such requirements also provide an opportunity to engage with Grade-A occupiers and structure forward purchase arrangements,” he adds.

Navneet D, director, GYGY, points out, “GCC occupiers are increasingly looking for Grade-A, green-certified campuses that support collaboration, hybrid work and talent experience rather than simply maximising seat capacity.” Flexible layouts, hospitality-style amenities and advanced technology infrastructure are becoming part of the brief, he puts in, raising workplace-design benchmarks and tightening the availability of suitable space in markets such as Bengaluru, Hyderabad, Pune and the NCR.

GCC workplaces increasingly require large floor plates, robust digital infrastructure, reliable power and connectivity, sustainability certifications, advanced security and collaborative spaces. Rows of desks are giving way to research-oriented environments, with small-team areas, acoustically treated spaces and infrastructure supporting constant global interaction.

Technology-driven GCCs may need fewer desks per employee but more space overall for collaboration, meetings and specialised infrastructure. Stronger security is also essential as centres handle proprietary code, sensitive data and critical operations.

This creates a paradox: despite overall office vacancy, there is a shortage of suitable GCC-ready space. Aditya Chellaram, executive director, Featherlite Developers, calls it a shortage of product, not space. With national Grade-A vacancy above 13%, GCC demand remains concentrated on buildings meeting sophisticated requirements.

Flexibility Becomes Fundamental

The rapid pace of GCC expansion is adding complexity. New mandates can come with tight delivery timelines that conventional office development and fitouts struggle to meet. Rakesh Singhal, founder, Shree KB Group, says, “GCCs have evolved from cost-driven back offices into strategic centres focused on innovation, high-tech talent and global decision-making. This is driving demand for sophisticated, collaborative and compliance-ready workplaces, while managed spaces allow multinationals to scale with lower upfront capital. India’s GCC economy could exceed $120 billion by 2030.”

Managed and flexible workspaces are therefore gaining traction, particularly among companies entering new markets. Providers increasingly handle design, technology and operations, enabling GCCs to focus on talent and business growth while scaling their footprint efficiently.

The opportunity is also broadening across sectors, with retail, aerospace and life sciences joining technology and BFSI. Demand is spreading beyond major metros, as tier-2 cities offer lower costs, growing talent pools and improving digital infrastructure.

A Catalyst For Urban Growth

The GCC effect extends beyond offices, generating demand for housing, hotels, retail, transport and social infrastructure. Parveen Jain, president, NAREDCO, believes that GCC expansion can drive long-term commercial demand and urban growth, while helping emerging cities build stronger business ecosystems.

This is changing how developers conceive business destinations, with future commercial districts needing to integrate offices, connectivity, amenities, hospitality, retail and quality-of-life infrastructure. Bengaluru illustrates this integrated approach. Nandakumar O P, chief operating officer - commercial office space, Brigade Group, states, “The city’s experience highlights the importance of connecting commercial environments with the wider urban fabric. As GCCs move up the value chain, the next phase will depend on integrating work, mobility, amenities and community.”

Mumbai is well positioned for the next wave, backed by its financial ecosystem, talent and infrastructure, while Pune is gaining momentum through its talent, industrial base, manufacturing strength and connectivity. Developers are responding. “Merlin Group is developing office-led projects in Pune for office occupiers, BFSI companies and GCCs, while its World Trade Centre project in Salt Lake, in Kolkata, is bringing Grade-A, GCC-ready infrastructure to eastern India,” asserts Saket Mohta, MD, Merlin Group.

The direction is clear: GCC growth is expanding the geography of India’s commercial real estate opportunity.

Building For The Next Cycle

The challenge is ensuring real estate keeps pace with GCC demand. Occupiers increasingly prioritise functionality, resilience, sustainability, workplace design, amenities, connectivity and employee experience alongside location and cost.

Grade-A is becoming more differentiated: adaptability, rather than simply newness or location, will determine long-term value, putting pressure on older stock to undergo substantial upgrades. Sustainability and technology are also critical, with occupiers demanding measurable standards for certification, energy performance, air quality and resilience, alongside robust digital infrastructure. These requirements are raising construction standards, as non-negotiable specifications, certifications and delivery timelines push the ecosystem to improve and filter out weaker supply.

Yet execution capacity could become a constraint. Much of the construction ecosystem still relies on manual estimation and unpredictable cash flows. As Iesh Dixit, CEO & founder, Powerplay, points out, “India’s ability to absorb high-quality GCC demand may ultimately be constrained less by appetite than by delivery capacity.”

The Next Chapter

GCC expansion is becoming more than an office-market phenomenon. It reflects a shift in how India participates in the global economy and how its cities build for it. CBRE estimates that by 2030, India could have 4,300 to 4,400 GCC units, employing 2.5 to 2.8 million people and generating $104 to $106 billion in revenues. The country’s advantage is no longer simply skilled talent at competitive costs. It increasingly lies in supporting global businesses through talent, technology, innovation and sophisticated infrastructure.

For commercial real estate, the equation is shifting from more companies, employees and desks to better talent, higher-value functions and smarter workplaces. GCC-era offices must be flexible, resilient and attractive to specialised talent, balancing technology with human interaction, collaboration, sustainability and performance.

The GCC story has moved from cost arbitrage to capability arbitrage. India’s office market is making the same transition, from supplying space to creating environments where global businesses can innovate, scale and lead.

This could be the GCC effect’s most lasting contribution to Indian real estate.