NEW DELHI: ICRA, a leading rating agency, anticipates that global capability centres (GCCs) will lease an additional 50-55 million square feet of Grade A office space during FY26-FY27, which could account for 38-40% of overall office demand in the top six markets: Bengaluru, Chennai, National Capital Region (NCR), Hyderabad, Mumbai Metropolitan Region (MMR), and Pune.
Furthermore, ICRA predicts that the number of GCCs will increase from about 1,700 currently to over 2,500 by 2030, generating upwards of $100 billion in revenue and expanding workforce capacity by 1.5-2.0 times.
The rapid growth of GCCs has become a significant growth driver for India’s commercial office real estate sector in recent years. Numerous states are also offering targeted subsidies, training incentives, and infrastructure support to boost GCC investments.
Anupama Reddy, Vice President and Co-Group Head (Corporate Ratings), stated, “Manpower costs and rental expenses constitute 70-75% of a GCC’s cost structure. The country’s unique mix of cost efficiency, extensive talent pool, and proactive policy support is attracting global enterprises to set up and expand their strategic operations here.”
US-based GCCs have dominated the demand for Grade A office space in India, accounting for 70% of total GCC absorption since 2021. Although the US market remains the leader, companies from the UK, Germany, France, Japan, Australia, and Singapore are gradually increasing their presence in India.
Between FY23 and FY25, Bengaluru led GCC office leasing with a 40% share, followed by Hyderabad at 18% and Chennai at 16%. The share of Engineering & Manufacturing surged to 25% from 12% during FY18-FY20, while BFSI rose to 21% from 15%, indicating India’s growing appeal for diversified global operations.
“India’s prime office rentals, at just $1-2 per square foot per month, are the most cost-effective worldwide, positioning the country as an attractive destination for multinational firms. In FY25, GCCs leased a record 24 million square feet of Grade A office space across the top six cities, with their share in total leasing rebounding to 37% from a low of 27% in FY23. With around 1,700 GCCs today, this number is expected to exceed 2,500 by 2030, generating over $100 billion in revenue and expanding workforce capacity by 1.5-2.0 times,” Reddy added.
