+
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

Concorde Buys Land in Hennur for Rs 5 billion Housing Project

Concorde has acquired a 3-acre land parcel in Hennur, North Bengaluru, for a premium high-rise residential development. With a total saleable built-up area of approximately 4.25 lakh sq ft, the project carries a Gross Development Value (GDV) of around Rs 5 billion and is expected to be launched in FY 2026–27. The upcoming project will comprise thoughtfully designed 2 and 3 BHK residences, catering to urban homebuyers seeking quality, connectivity, and community. It marks Concorde’s continued expansion in the high-demand North Bengaluru corridor. “This investment underlines our ..

Next Story
Building Material

Shree Cement Appoints Jay Mukhopadhyay as Safety Head

Shree Cement, one of India’s leading cement manufacturers, has appointed Jay Mukhopadhyay as its Corporate Safety Head. With over 30 years of experience in Health, Safety & Environment (HSE), Mukhopadhyay brings strong expertise in embedding safety into corporate culture.He has previously led large-scale safety programs and is recognised for driving people-first, compliance-oriented safety systems across industrial operations.At Shree Cement, Mukhopadhyay will spearhead safety strategy across all plants and project sites. His focus will include developing unified safety frameworks, promo..

Next Story
Infrastructure Urban

REC Reports Record Quarterly Profit of Rs 4,451 Crore

REC has reported its highest-ever quarterly profit, with net profit reaching Rs 4,451 crore for the quarter ended June 30, 2025. The Board of Directors approved the standalone and consolidated financial results for Q1 FY26.Key Highlights – Q1 FY26 vs Q1 FY25 (Standalone):• Disbursements rose by 36 per cent to Rs 59,508 crore• Total income increased 13 per cent to Rs 14,734 crore• Net interest income climbed 17 per cent to Rs 5,247 crore• Net profit grew 29 per cent to Rs 4,451 crore• Return on net worth improved by 312 bps to 22.63 per centThe company sustained strong growth across..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?