GCCs Could Account for Half of India Office Demand
ECONOMY & POLICY

GCCs Could Account for Half of India Office Demand

Global Capability Centres (GCCs) are expected to remain central to India’s office market and could account for up to 50 per cent of demand across the top seven cities, Colliers India projected. The consultant estimates annual Grade A uptake by GCCs may reach 35–40 mn square feet, representing about 40–50 per cent of leasing volumes. The expansion reflects the shift of capability centres from cost arbitrage to higher value research and development and engineering functions.

India’s macroeconomic resilience supports the outlook, with the International Monetary Fund revising GDP growth to six point three per cent for 2026 and six point five per cent for 2027. Progress on free trade agreements and bilateral ties with the US, EU and UK is expected to lower entry barriers and encourage multinationals to scale up local operations. Tariff rationalisation and digital trade facilitation under discussion may further boost foreign investment.

Since 2020, US-headquartered companies have accounted for about 70 per cent of GCC leasing in India, while EU and UK occupiers accounted for eight to 10 per cent each. Colliers expects the US share to moderate as European and UK occupiers increase presence and diversify activity. Technology remains the anchor sector, with banking, financial services and insurance and engineering firms gaining ground.

Data show cumulative Grade A gross absorption of 310.5 mn square feet between 2020 and 2025, with GCCs contributing 117.3 mn square feet, roughly 38 per cent. Annual GCC leasing rose from 16.3 mn square feet in 2020 to 29.2 mn square feet in 2025, and the GCC share exceeded 40 per cent last year. Colliers projects sectoral diversification to continue, with banking, financial services and insurance and engineering and manufacturing projected to provide 40–50 per cent of GCC uptake in 2026. The consultant added that skilled talent availability and structural cost advantages should sustain long-term expansion of India’s GCC ecosystem.

Global Capability Centres (GCCs) are expected to remain central to India’s office market and could account for up to 50 per cent of demand across the top seven cities, Colliers India projected. The consultant estimates annual Grade A uptake by GCCs may reach 35–40 mn square feet, representing about 40–50 per cent of leasing volumes. The expansion reflects the shift of capability centres from cost arbitrage to higher value research and development and engineering functions. India’s macroeconomic resilience supports the outlook, with the International Monetary Fund revising GDP growth to six point three per cent for 2026 and six point five per cent for 2027. Progress on free trade agreements and bilateral ties with the US, EU and UK is expected to lower entry barriers and encourage multinationals to scale up local operations. Tariff rationalisation and digital trade facilitation under discussion may further boost foreign investment. Since 2020, US-headquartered companies have accounted for about 70 per cent of GCC leasing in India, while EU and UK occupiers accounted for eight to 10 per cent each. Colliers expects the US share to moderate as European and UK occupiers increase presence and diversify activity. Technology remains the anchor sector, with banking, financial services and insurance and engineering firms gaining ground. Data show cumulative Grade A gross absorption of 310.5 mn square feet between 2020 and 2025, with GCCs contributing 117.3 mn square feet, roughly 38 per cent. Annual GCC leasing rose from 16.3 mn square feet in 2020 to 29.2 mn square feet in 2025, and the GCC share exceeded 40 per cent last year. Colliers projects sectoral diversification to continue, with banking, financial services and insurance and engineering and manufacturing projected to provide 40–50 per cent of GCC uptake in 2026. The consultant added that skilled talent availability and structural cost advantages should sustain long-term expansion of India’s GCC ecosystem.

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