India’s office real estate sector is reaching unprecedented heights, thanks to the rapid expansion of Global Capability Centers (GCCs). According to a recent report, the March 2024 quarter witnessed record-breaking office space leasing, with GCCs emerging as the primary growth drivers behind this surge
A Historic Quarter for India’s Office Market
The country’s top seven cities recorded a historic 17.3 million square feet of office space absorption in Q1 2024, a remarkable 43% year-on-year growth. This is the highest quarterly leasing activity India has seen, fueled significantly by the aggressive expansion plans of multinational firms setting up or scaling their GCCs
GCCs at the Heart of the Surge
GCCs now account for 44% of total office leasing activity—the highest share in over six years. These centers, operated by global enterprises across sectors such as technology, pharmaceuticals, financial services, and automotive, are increasingly choosing Indian metros for their vast talent pool, cost efficiencies, and scalable infrastructure
Hyderabad and Bengaluru Lead the Way
Hyderabad emerged as the front-runner in office space leasing during this period, driven by strong demand from global firms like Microsoft, Vanguard, and McDonald’s expanding their GCC presence. Bengaluru followed closely, maintaining its long-standing position as a favorite for tech-driven GCCs. Together, these cities accounted for nearly half of the country’s total leasing activity
Sectoral and Regional Dynamics
- Technology & Financial Services: ontinue to dominate GCC-led leasing, driven by increased digital transformation and AI adoption
- Pharma & Healthcare: A growing number of GCCs from the life sciences sector are investing in R&D and data analytics hubs
- Tier-2 Cities: hile metros remain dominant, cities like Pune and Chennai are also seeing steady traction, signaling a more distributed growth pattern
A Long-Term Growth Story
Industry experts believe this momentum is not a short-term spike but the beginning of a sustained growth phase. The stability of India’s macroeconomic environment, combined with favorable government policies and rapid digitalization, is making the country an ideal location for long-term GCC investments
Looking Ahead
With over 1,600 GCCs already operating in India and more on the horizon, the demand for high-quality office spaces is expected to remain strong. Developers are now shifting focus to flexible, sustainable, and tech-enabled workplaces to cater to the evolving needs of global firms.
As GCCs continue to power India’s economic and real estate engines, the country’s status as a global back-office and innovation hub is getting firmly cemented—one leased square foot at a time.
As GCCs continue to power India’s economic and real estate engines, the country’s status as a global back-office and innovation hub is getting firmly cemented—one leased square foot at a time.
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