GCC Expansion Reveals India's Tech Hub Transformation: 40% Office Demand Surge

The number of GCCs is expected to rise from approximately 1,700 to over 2,500 by 2030, generating over $100 billion in revenue and scaling workforce capacity by 1.5-2 times, according to rating agency ICRA.

The country's unique combination of cost competitiveness, deep talent pool, and proactive policy support is attracting global enterprises to establish and expand their strategic operations in India, the report said.

Further, as GCCs evolve into innovation and R&D hubs, ICRA expects sustained leasing momentum, especially in tech-enabled and green-certified office spaces.

Several states are also introducing targeted subsidies, training incentives and infrastructure support to further accelerate GCC investments.

GCCs leased a record 24 million sq ft of Grade A office space in FY25 across Bengaluru, Chennai, Delhi NCR, Hyderabad, MMR, and Pune. The share of Grade A office space in total leasing increased to 37 per cent from 27 per cent in FY2023.

Between FY2023 and FY2025, Bengaluru led GCC office leasing with a dominant 40 per cent share, followed by Hyderabad at 18 per cent and Chennai at 16 per cent. US-based GCCs have made up 70 per cent of absorption since 2021, with firms from the UK, Germany, France, Japan, Australia, and Singapore expanding their presence. Approximately 65 per cent of new leasing in the GCC took place in green-certified integrated tech parks.

While technology occupiers remain the primary drivers of GCC demand, sectors like engineering & manufacturing, banking, financial Services & insurance (BFSI) are rapidly expanding their footprint, the report said. These sectors almost doubled their share in leasing in five years until FY 2025.

ICRA found that India's prime office rentals, at just $1-$2 per sq. ft. per month, are the most affordable globally, making the country a highly cost-effective destination for multinational firms.

- IANS