New Delhi, July 24 (SocialNews.XYZ) Global Capability Centres (GCCs) are set to drive nearly half of India's office space demand over the next two years, reinforcing the country's position as a leading global innovation hub, a report said on Friday.
A report by Colliers showed that GCCs are expected to account for 45-50 per cent of India's Grade A office leasing demand in 2026 and 2027, with annual leasing projected at 35-40 million square feet.
Since 2021, GCCs have leased about 118 million square feet of Grade A office space across the country's top seven cities, accounting for 37 per cent of the overall office demand, it said.
In the first half of 2026 alone, GCCs leased 16.6 million square feet, contributing 46 per cent of the total Grade A office space absorption.
According to the report, GCCs in India have evolved beyond traditional back-office operations into strategic hubs for artificial intelligence (AI), engineering, analytics, research and development (R&D) and digital transformation.
"India has firmly established itself at the epicentre of GCC-led innovation, combining talent superiority, cost arbitrage and technological prowess with policy support and a favourable business environment," said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
He added that multinational corporations are expected to continue expanding their capability centres in India, with AI-led innovation likely to remain a key driver of office demand.
In terms of sector, technology remained the largest contributor to GCC leasing, accounting for 39 per cent of cumulative demand since 2021.
However, the report highlighted increasing diversification, with the banking, financial services and insurance (BFSI) sector contributing 22 per cent of GCC leasing during the period, followed by engineering and manufacturing at 16 per cent.
BFSI leasing volumes nearly tripled between 2021 and 2025, while engineering and manufacturing leasing grew more than 2.5 times.
City-wise, Bengaluru and Hyderabad continued to dominate the GCC market, accounting for more than 60 per cent of total leasing since 2021.
While demand is becoming increasingly broad-based, with Chennai, Pune, Mumbai and Delhi-NCR witnessing growing interest from multinational companies setting up capability centres.
The report also noted that emerging trends such as AI-native GCCs, nano and mid-sized GCCs, and the ‘hub-plus-one’ strategy extending operations into Tier-II and Tier-III cities are expected to shape the next phase of growth.
Source: IANS
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