BENGALURU: Global Capability Centres (GCCs) are set to account for up to 50% of the demand for grade-A office space in India’s top seven cities over the coming years. Annual leasing by GCCs is projected to reach 35–40 million sq ft, as per a recent report by Colliers India.
The report indicates that GCCs have absorbed approximately 117 million sq ft of office space since 2020, which amounts to 38% of the total 310 million sq ft leased during this time. Their share in overall leasing has climbed from under 30% a few years ago to an expected 40% by 2025.
The expansion has been primarily driven by US-based firms, which contribute nearly 70% of GCC leasing activity since 2020. Companies from the European Union and the UK each contribute about 8–10%. Colliers anticipates that the US share will gradually decrease as EU- and UK-based firms gain prominence, especially in sectors such as engineering & manufacturing, BFSI, and consulting.
Arpit Mehrotra, managing director of office services at Colliers, stated that GCC leasing could hit 35–40 million sq ft in the coming years, representing 40–50% of the overall office demand. He added that while the technology-driven demand from US firms may stabilize, leasing activity from EU and UK firms is expected to rise, supported by trade agreements and sectoral growth.
The report also highlighted that GCC leasing volumes have nearly doubled over five years, increasing from about 16 million sq ft in 2020 to close to 30 million sq ft by 2025. Technology firms represent 47% of leasing by US-based GCCs, followed by BFSI at 21%. In contrast, engineering and manufacturing firms dominate EU-based GCC demand, making up nearly 60% of their leasing activities in India. UK-origin GCCs display a more diversified approach, led by BFSI (29%) and consulting (23%).
Vimal Nadar, national director and head of research at Colliers, mentioned that GCC demand is diversifying, with BFSI and engineering & manufacturing firms expected to contribute 40–50% of GCC space uptake by 2026.
