India's GCC Leasing Set to Drive 40% of Office Demand
Real Estate

India's GCC Leasing Set to Drive 40% of Office Demand

India's Global Capability Centres (GCCs) have emerged as key players in the nation's office leasing landscape, showcasing robust growth during the first quarter of the fiscal year 2025. According to recent data, GCCs leased an impressive 5 million square feet, accounting for 37% of total office leasing across India's top six cities.

The momentum is expected to continue, with projections indicating that GCCs will occupy between 45-50 million square feet of office space over the next two years, constituting approximately 40% of total demand. This heightened activity is fueled by a diverse range of occupiers spanning sectors such as banking, financial services, technology, engineering, manufacturing, and healthcare. Additionally, there is a notable preference for green-certified Grade A office spaces among GCCs.

Sub- and near-dollar micro-markets have been instrumental in driving GCC space uptake, contributing nearly 80% of leasing activity between 2019 and 2023. This trend underscores the significance of these micro-markets in accommodating the evolving needs of GCCs in India.

Vimal Nadar, Senior Director and Head of Research at Colliers India, emphasized India's position as a premier GCC hub in the Asia-Pacific region, highlighting factors such as a robust talent pool, strategic location, and commitment to sustainability as key drivers of this trend.

The latest report from Colliers, titled "Expert Insights - Asia Pacific Office Markets April 2024," revealed a 4-8% year-on-year rise in rentals across India's prime office markets in the first quarter. This growth, propelled by strong demand and high-quality supply, indicates a resurgence in the office market despite pandemic-induced challenges.

Arpit Mehrotra, Managing Director of Office Services at Colliers India, noted that office occupiers are adapting to market dynamics by embracing cost-optimization strategies such as the hub-and-spoke model and expanding flexible space portfolios. Suburban and peripheral areas offering affordability are witnessing heightened demand, reflecting a preference for cost-effective solutions.

Flexible spaces, particularly with the rise of core-plus-flex models, are gaining prominence, constituting 8.7 million square feet of leasing in 2023 alone. This segment is expected to continue its momentum in 2024, comprising 15-20% of total office leasing across India's top six cities.

The Colliers report outlined six priorities for achieving cost efficiency in office real estate, including aligning office strategy with business goals, maximizing lease negotiations, and prioritizing energy-efficient systems and upgrades.

India's thriving office market, driven by GCCs and evolving occupier preferences, reaffirms the nation's position as a key player in the global business landscape.

India's Global Capability Centres (GCCs) have emerged as key players in the nation's office leasing landscape, showcasing robust growth during the first quarter of the fiscal year 2025. According to recent data, GCCs leased an impressive 5 million square feet, accounting for 37% of total office leasing across India's top six cities. The momentum is expected to continue, with projections indicating that GCCs will occupy between 45-50 million square feet of office space over the next two years, constituting approximately 40% of total demand. This heightened activity is fueled by a diverse range of occupiers spanning sectors such as banking, financial services, technology, engineering, manufacturing, and healthcare. Additionally, there is a notable preference for green-certified Grade A office spaces among GCCs. Sub- and near-dollar micro-markets have been instrumental in driving GCC space uptake, contributing nearly 80% of leasing activity between 2019 and 2023. This trend underscores the significance of these micro-markets in accommodating the evolving needs of GCCs in India. Vimal Nadar, Senior Director and Head of Research at Colliers India, emphasized India's position as a premier GCC hub in the Asia-Pacific region, highlighting factors such as a robust talent pool, strategic location, and commitment to sustainability as key drivers of this trend. The latest report from Colliers, titled Expert Insights - Asia Pacific Office Markets April 2024, revealed a 4-8% year-on-year rise in rentals across India's prime office markets in the first quarter. This growth, propelled by strong demand and high-quality supply, indicates a resurgence in the office market despite pandemic-induced challenges. Arpit Mehrotra, Managing Director of Office Services at Colliers India, noted that office occupiers are adapting to market dynamics by embracing cost-optimization strategies such as the hub-and-spoke model and expanding flexible space portfolios. Suburban and peripheral areas offering affordability are witnessing heightened demand, reflecting a preference for cost-effective solutions. Flexible spaces, particularly with the rise of core-plus-flex models, are gaining prominence, constituting 8.7 million square feet of leasing in 2023 alone. This segment is expected to continue its momentum in 2024, comprising 15-20% of total office leasing across India's top six cities. The Colliers report outlined six priorities for achieving cost efficiency in office real estate, including aligning office strategy with business goals, maximizing lease negotiations, and prioritizing energy-efficient systems and upgrades. India's thriving office market, driven by GCCs and evolving occupier preferences, reaffirms the nation's position as a key player in the global business landscape.

Next Story
Real Estate

Hyderabad Financial District Evolves into a City Within a City

The Financial District in Hyderabad is rapidly transforming into more than just a business hub—it is evolving into a “city within a city,” a compact ecosystem where work, home, education, healthcare, and lifestyle coexist seamlessly. This vision was reinforced at a press conference hosted by ASBL, where data and insights highlighted why the Financial District has become one of India’s most resilient and future-ready real estate markets. Over the past four years, rental appreciation has consistently outpaced the city average, underlining genuine demand. In FY 2024–25 alone, 3BHK ..

Next Story
Real Estate

TOTO Expands Bathroom Portfolio in India

TOTO India has expanded its product portfolio with the launch of season-inspired basins, premium faucets, and a new water-efficient WC range. The new additions reflect the brand’s philosophy of combining Japanese craftsmanship, technology, and design with sustainable living. The season-themed basins, enhanced with TOTO’s CEFIONTECT glaze, are offered in four shades—Forest Green, Mandarin Orange, Scarlet Red, and Ash Blue—each inspired by a season. Complementing these are faucets in Rose Gold and Graphite finishes, crafted with PVD technology for durability and manufactured using p..

Next Story
Infrastructure Energy

India Sees 1 per cent Drop in Power Sector CO₂ Emissions

India’s carbon dioxide emissions from the power sector fell by 1 per cent year-on-year in the first half of 2025, marking only the second decline in nearly 50 years, according to a research report. The reduction was largely driven by record clean-energy capacity additions and lower electricity demand due to unusually mild weather, the analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief found.The Helsinki-based think tank attributed 65 per cent of the decline in fossil-fuel generation to slower demand growth, 20 per cent to faster expansion of clean energy, and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?