Global Capability Centres (GCCs) are projected to be a significant driver of India’s office space demand in the next two years, according to a report. GCCs are expected to contribute 45-50% of India’s Grade A office leasing demand in 2026 and 2027, with an estimated annual leasing of 35-40 million square feet. Since 2021, GCCs have already leased around 118 million square feet of Grade A office space in India’s top seven cities, constituting 37% of the total office demand.
The report highlights that in the first half of 2026, GCCs leased 16.6 million square feet, representing 46% of the total Grade A office space absorption. These centres in India have transformed from traditional back-office functions to strategic hubs for artificial intelligence (AI), engineering, analytics, research and development (R&D), and digital transformation. Multinational corporations are anticipated to further expand their capability centres in India, with a focus on AI-led innovation driving office demand.
Technology has been the leading sector in GCC leasing, contributing 39% of the total demand since 2021. However, there is a noticeable diversification trend, with the banking, financial services, and insurance (BFSI) sector accounting for 22% of GCC leasing, followed by engineering and manufacturing at 16%. Notably, BFSI leasing volumes nearly tripled between 2021 and 2025, while engineering and manufacturing leasing increased by more than 2.5 times.
Bengaluru and Hyderabad have been the primary cities dominating the GCC market, representing over 60% of total leasing since 2021. Nevertheless, there is a growing interest from multinational companies in cities like Chennai, Pune, Mumbai, and Delhi-NCR for setting up capability centres. Emerging trends such as AI-native GCCs, nano and mid-sized GCCs, and the ‘hub-plus-one’ strategy expanding operations to Tier-II and Tier-III cities are expected to influence the future growth trajectory.
