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GCCs to Drive 50% of India's Office Demand, US Firms Lead Expansion

Global Capability Centres are projected to account for up to 50% of India's office demand in top markets, driven significantly by US-based firms. Since 2020, US companies have dominated nearly 70% of GCC leasing activity, with EU and UK firms also expanding their presence. Annual Grade A office uptake by GCCs could reach 35-40 million square feet in the coming years, supported by trade agreements and sector diversification. The growth is fueled by skilled talent availability, cost advantages, and increasing traction in engineering, BFSI, and consulting sectors.

Key Points: GCCs to Fuel 50% of India's Office Space Demand by 2025

  • US firms lead 70% of GCC leasing
  • Annual GCC uptake may hit 40 million sq ft
  • EU and UK firms show rising traction
  • Skilled talent and cost benefits fuel growth
2 min read

GCCs likely to drive up to 50 pc of India's office demand led by US-based firms

US firms dominate GCC leasing in India, with demand projected to hit 40 million sq ft annually. EU and UK firms are gaining traction in key sectors.

"GCCs will continue to anchor India's office space demand, supporting the ongoing scale-up and diversification of occupier base. - Vimal Nadar"

Mumbai, Feb 19

Global Capability Centres could account for up to 50 per cent of India's office space demand across the top seven markets as US firms continue to dominate leasing activity, a report said on Thursday.

The report from Colliers India said US firms have accounted for close to 70 per cent of GCC leasing activity in India since 2020, followed by EU and UK companies at an 8-10 per cent share each.

The annual Grade A office uptake by GCCs could reach 35-40 million sq ft over the next few years, accounting for 40-50 per cent of overall office demand, the report said.

"While technology based GCC demand from US firms can stabilize, we anticipate increasing traction from companies of EU and UK origin, especially within the engineering & manufacturing, BFSI and consulting domains," said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

The ongoing trade agreements and tariff rationalisation with the US, EU and UK are likely to boost long‑term office demand across technology, banking and financial services, engineering and manufacturing, and consulting sectors, the report noted.

Of the 310 million sq ft of cumulative office space demand in the country since 2020, GCCs accounted for about 117 million sq ft, or 38 per cent, the report said. The steady growth in GCC demand is evident from the increase in space uptake from around 16 million sq ft in 2020 to close to 30 million sq ft in 2025, it added.

"GCCs will continue to anchor India's office space demand, supporting the ongoing scale-up and diversification of occupier base," said Vimal Nadar, National Director & Head of Research, Colliers India.

Nadar said that global trade frictions have relatively moderated, and recent bilateral agreements between India and its leading trade partners will translate into traction across key demand drivers of the Indian office market.

Further, skilled talent availability and cost arbitrage will continue to fuel expansion of capability centers in India, the real estate services firm said.

- IANS

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Reader Comments

A
Arjun K
While the growth is impressive, I hope this leads to sustainable urban development. Our metros are already bursting at the seams. We need better infrastructure planning alongside this office space boom.
R
Rohit P
US firms taking 70% share shows where the real confidence is. The cost arbitrage and talent pool here are unbeatable. Hope the EU and UK firms catch up soon for more balanced growth.
S
Sarah B
Working in a GCC in Bangalore, I can see this trend firsthand. The scale-up is real, but companies also need to focus on employee well-being and not just square footage. The work culture matters.
V
Vikram M
Good for commercial real estate, but what about affordable housing for the employees who will fill these offices? Development needs to be holistic. Otherwise, we're just creating more pressure on cities like Mumbai and Delhi.
K
Karthik V
The bilateral agreements mentioned are key. Stable trade relations build long-term confidence for foreign companies to set up shop here. This is a solid foundation for the next decade of growth.

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