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ICRA projects India's Global Capability Centre (GCC) count to exceed 2,500 within five years, driving major office space demand across key cities. In FY25, GCCs leased a record 24 million sq ft of Grade A space-37% of total leasing-up from 27% the previous year. By FY27, leasing could reach 50-55 million sq ft, with India's GCCs generating over USD 100 billion in revenue by 2030. Experts cite India's cost advantage, skilled workforce, and strong infrastructure as key growth drivers. With U.S.-based GCCs accounting for 70% of demand since 2021, India remains a top destination for flexible, innovation-driven office spaces.
ICRA has estimated that the number of Global Capability Centres (GCCs) in India would rise to more than 2,500 within the next five years, fuelling substantial demand for office space across key markets. The rating agency noted that during the 2024-25 fiscal, GCCs leased a record 24 million square feet of Grade A office space in the top six cities, with their share of total leasing rebounding to 37 per cent from 27 per cent in the previous fiscal. Advertisement
The report projected that GCCs would lease between 50 and 55 million square feet of Grade A office space during FY26 and FY27, accounting for an estimated 38-40 per cent of total office demand in Bengaluru, Chennai, Delhi-NCR, Hyderabad, the Mumbai Metropolitan Region (MMR) and Pune. ICRA further stated that the number of GCCs is expected to rise from approximately 1,700 to over 2,500 by 2030, generating more than USD 100 billion in revenue and scaling workforce capacity by up to two times.
Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings at ICRA, mentioned that India's combination of cost efficiency, skilled talent pool, and proactive policy framework continues to attract multinational firms looking to establish or expand their strategic operations in the country.
Adding his perspective, Shivam Agarwal, Vice President of Strategic Growth at Sattva Group, said India has emerged as the world's GCC capital, offering an English-speaking, young workforce delivering world-class expertise at unmatched cost competitiveness. He emphasised that to sustain this momentum, collaboration among real estate stakeholders, government bodies, and industries would be crucial to developing infrastructure and regulatory frameworks that align with this pace of expansion.
Shesh Rao Paplikar, Founder and CEO of BHIVE Workspace, observed that the growing GCC presence reflects a structural shift in how global companies view India as a strategic location. He said that enterprises are increasingly focusing on innovation, advanced capabilities, and workplace experience rather than just cost benefits. Paplikar added that companies now seek scalable, employee-friendly office spaces that enhance operational efficiency and flexibility while ensuring long-term value creation.
Sijo Jose, Co-Founder of SpazeOne, remarked that the rising GCC activity underlines India's strengthening role as a global business hub. He noted a growing preference for flexible, technology-enabled and collaborative workspaces among international occupiers.
The report also highlighted that US-based GCCs have driven Grade A office space demand in India, accounting for nearly 70 per cent of total GCC absorption since 2021. With prime office rentals averaging just USD 1-2 per square foot per month, India continues to be among the most affordable office destinations globally, offering a compelling value proposition for multinational firms.
India's emergence as a global GCC powerhouse is reshaping its office real estate landscape. With record leasing levels, affordable prime rentals, and a strong supply of skilled professionals, the country is positioned to remain a preferred base for multinational firms. Sustaining this leadership, however, will depend on continued collaboration between the private sector and policymakers to ensure infrastructure keeps pace with the rapid expansion of GCCs.
Source - PTI
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