Dominance of Southern Cities in GCC Leasing
In Q1 2025, Bengaluru, Chennai, and Hyderabad together accounted for a dominant 64% share of all GCC office leasing across India’s top seven cities. These southern cities leased approximately 5.34 million square feet of office space out of a total 8.35 million square feet leased by GCCs nationwide during this period.
While southern cities dominate the landscape, the Delhi-NCR region remains an important alternative hub, contributing around 1.95 million square feet of leasing activity in Q1 2025.
Expanding Reach Beyond Tier-1 Cities
Peush Jain, a real estate expert, highlighted the growing presence of GCCs not only in major cities but also in Tier 2 and Tier 3 cities such as Ahmedabad, Kochi, and Coimbatore. This expansion reflects a strategic shift as GCCs seek to diversify locations to optimize costs and tap into emerging talent pools.
GCCs’ Impact on India’s Commercial Real Estate
The role of GCCs in India’s commercial real estate sector has grown significantly. In Q1 2025, GCCs accounted for 43% of the total 19.47 million square feet leased across the top seven cities—a remarkable 72% year-over-year increase compared to 4.87 million square feet leased in Q1 2024.
This surge underscores the rising strategic importance of Indian operations for global corporations aiming to build robust operational capabilities while managing costs effectively. Recent government initiatives, announced in the Union Budget, are expected to further boost this trend.
Sectoral Diversification in GCC Leasing
While IT/ITeS companies remain the largest drivers, holding a 35% share of leased space, there is notable diversification in sectoral composition:
- Banking, Financial Services, and Insurance (BFSI): 22% share
- Manufacturing and Industrial sectors: 13%
- E-commerce: 6%
- Consultancy: 5%
- Other sectors collectively make up 19%
This diversification marks a shift from pre-pandemic patterns where GCCs were predominantly concentrated in IT/ITeS and BFSI sectors.
GCC Ecosystem Scale and Future Growth
As of the end of 2024, India hosted over 1,700 GCCs across the top seven cities, collectively valued at approximately USD 52 billion and employing between 1.70 to 1.80 million professionals.
Projections indicate continued strong growth:
- By the end of 2025: Over 1,900 GCCs expected, market value reaching USD 60-70 billion, with around 1.9 million employees.
- By 2030: GCC footprint projected to expand to 2,200-2,300 centres, market size reaching USD 100-110 billion, employing between 2.4 to 2.8 million professionals.
Conclusion
The early 2025 data reflects South India’s emergence as a preferred destination for GCC expansions due to its talent pool, infrastructure, and growing industrial diversity. Alongside this, India’s GCC ecosystem continues to mature and diversify, becoming a critical component of the country’s economic and real estate landscape.
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