New Delhi, July 24 (IANS). The share of Global Capability Centers (GCCs) in the demand for office space in India is expected to be around 50 per cent in two years, further strengthening the country’s position as a global innovation hub. This information was given in a report released on Friday.
According to the Colliers report, GCC is expected to account for 45-50 per cent of the total leasing demand for Grade-A office space in India in 2026 and 2027. During this period, annual leasing can reach 35 to 40 million square feet.
According to the report, since 2021, GCC has leased about 118 million square feet of Grade-A office space across seven major cities of the country, which is 37 percent of the total office space demand during this period.
In H1 2026 alone, GCC leased 16.6 million sq ft of Grade-A office space, accounting for 46 per cent of the total Grade-A office space leased.
According to the report, GCCs in India are no longer limited to just traditional back-office operations, but have become strategic hubs of Artificial Intelligence (AI), engineering, analytics, research and development (R&D) and digital transformation.
Arpit Mehrotra, Managing Director (Office Services), Colliers India, said, “India has firmly established itself as a global hub of GCC-based innovation on the back of talent, cost efficiency, technical capability, policy support and conducive business environment.”
He said MNCs will continue to expand their capability centers in India and AI-based innovation will continue to be a key driver of demand for office space.
Sector-wise, the technology sector has had the highest share of 39 percent in GCC leasing since 2021.
However, the report also said that diversification is now increasing rapidly. The banking, financial services and insurance (BFSI) sector accounted for 22 percent, while the engineering and manufacturing sector contributed 16 percent.
BFSI sector leasing is expected to grow nearly three times between 2021 and 2025, while engineering and manufacturing sector leasing is expected to grow by more than 2.5 times.
In terms of cities, Bengaluru and Hyderabad led the GCC market. The combined share of these two cities in the total leasing from 2021 till now has been more than 60 percent.
However, now the scope of demand is also increasing rapidly and multinational companies are showing increasing interest in setting up new capability centers in Chennai, Pune, Mumbai and Delhi-NCR.
AI-native GCC, nano and mid-sized GCC and expansion of operations to tier-2 and tier-3 cities under the ‘hub-plus-one’ strategy will shape the next phase of growth of the GCC region in the coming years, the report said.
–IANS
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