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India’s office market is undergoing a structural shift and one of the major factors is the rapid expansion of Global Capability Centres (GCCs). Traditionally, large GCCs preferred conventional Grade A office campuses. But factors such as talent distribution, portfolio agility and cost optimisation have nudged them toward flexible workspace models. In 2024, GCCs leased about 25.7 million sq. ft. of Grade A office space, nearly double the levels of 2021 and this momentum has carried into 2025 as well. This scale has made them one of the largest occupier groups shaping commercial real estate.

 “GCCs have already leased 12.8 million sq. ft. of office space in the first half of 2025, a 19% annual increase. In fact, GCCs have accounted for close to 40% of the overall office space demand over the last few years”  Vimal Nadar, National Director & Head, Research, Colliers India told The GCC Hub. 

A report by CBRE and Indiqube reveals that this demand is forecasted to account for 35–40% of office absorption in 2025–26, majority inclined towards managed and flexible formats. Companies now seek “office-as-a-service”—delegating design, build and management of workspaces to operators while focusing on core business outcomes.

One of the key drivers behind this shift is talent proximity. GCCs are expanding beyond Bengaluru into cities like Hyderabad, Chennai, and Pune, as well as Tier II hubs such as Coimbatore and Ahmedabad. In Tier I cities, GCCs are increasingly choosing flexible workspaces near residential areas that offer strong connectivity and comparatively lower rentals, notes Nadar.

The popular “core + flex” strategy offers scalability and agility, allowing companies to anchor long-term operations in large campuses while leveraging coworking spaces for project teams, innovation pods, or rapid expansions. These flexible workspaces now integrate hospitality, wellness, and community experiences—supporting employee well-being and retention. Additionally, models like “fit-out-as-a-service” and managed campuses offer capital efficiency by eliminating upfront capex and converting real estate into a scalable operating expense. In fact, such spaces can offer a cost arbitrage of up to 20% compared to traditional setups.

Coworking operators have evolved from startup-focused hubs to enterprise-grade partners. They now offer custom-built managed offices, campus-like experiences and even on-demand day-pass solutions. For GCCs, this model delivers speed, compliance and brand-ready infrastructure. Tech remains the largest driver of India’s commercial office demand and GCCs, with their focus on AI, data and cloud, sit at the centre of this growth. Meanwhile, coworking providers like GoodWorks note that enterprise demand already makes up over 40% of coworking occupancy—a number set to rise as GCCs deepen their India bets.

India’s flexible workspace stock has grown from 35 million sq. ft. in 2020 to 88 million sq. ft. in early 2025. This meteoric rise mirrors the trajectory of GCCs themselves. As multinationals and unicorns continue to leverage India for talent, innovation and digital transformation, coworking and office-as-a-service will no longer be fringe models—they will be the default strategy for agile, future-ready enterprises.

In many ways, the story of India’s coworking boom is the story of its GCC revolution. The appetite of global firms to scale quickly, remain flexible and focus on talent is gradually reshaping office spaces and influencing work practices in India.