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With India’s GCC market projected to surpass US$100 billion by 2030 — with 2,500 centres and over 4.5 million employees — the opportunities are immense. In an exclusive interview with The GCC Hub, Vimal Nadar, National Director & Head of Research at Colliers India, discusses the rapidly evolving landscape of flexible workspaces. He shares insights on how Global Capability Centres (GCCs) are driving demand, reshaping workplace strategies and adapting to the future of work.

Edited excerpts:

How is the rapid growth of Global Capability Centres influencing the demand for co-working spaces across key Indian cities?

GCC demand for Grade A office space across top 7 cities of India has continued to accelerate, supported by the growth of innovation centres, a strong talent pool, favourable policies and cost-effective real estate solutions. 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. 

Their expansion is reshaping the contours of commercial real estate in India, with many turning to flexible workspaces to fast-track market entry, operationalise pilot teams and manage interim requirements while long-term real requirements are on the rise too. Overall, contrary to earlier apprehensions, GCCs are increasingly comfortable with flexible workspaces to streamline operating costs and manage dynamic manpower requirements. 

Cost-wise, how effective are co-working or flexible workspace models compared to traditional office setups? Can you share a comparable range in percentage terms?

Flexible workspaces typically offer a cost arbitrage of up to 20% as compared to traditional office setups. For GCCs, which are expanding at scale and pace, this adds to the value proposition of flexible work models. The cost arbitrage is particularly evident in premium localities within Central Business Districts (CBDs) of most cities, where flex operators tend to squeeze their profitability margins. Typically, grade A flexible office spaces in CBDs are 15-20% less expensive compared to traditional office spaces, whereas Secondary and Peripheral Business Districts (SBDs & PBDs) can offer a rental arbitrage of up to 15%.

Are there specific cities or micro-markets in India where this trend is more pronounced, and if so, why?

Overall, since 2021, Bengaluru and Hyderabad alone have driven more than 60% of India’s GCC activity, supported by a deep talent pool, mature IT ecosystem, availability of high-quality office supply and progressive policies.

Global companies prefer having their offices in locations close to employee residences. Yet at the same time, GCCs tend to display strong affinity for premium developments in their city of operations and hence commercial buildings in SBDs fit most of the requirement criteria. Almost two-thirds of the GCC demand comes from SBD micro-markets across major cities. PBDs too have been gaining traction in recent years on account of rental cost arbitrage. At the micro-market level, India’s GCC growth story remains highly concentrated in a few established micro-markets, with the top 10 locations driving nearly three-fourths of the pan India GCC leasing since 2021. Outer Ring Road (ORR) in Bengaluru has emerged as the single largest GCC micro-market, closely followed by Secondary Business District (SBD) Hyderabad. These two micro-markets have together accounted for 37% of the country’s GCC demand since 2021.

How are co-working operators evolving their offerings to cater to the unique needs of GCCs, such as scale, security or collaboration?

Flex space operators are increasingly offering tailored services to meet the evolving needs of GCCs. Larger floor plates, customised layouts, strong security & compliance protocols in line with global standards, and backup systems for uninterrupted operations are pivotal from a GCC occupier perspective. Leading flex space operators are continuously enhancing their offerings with employee-centric fit-outs adept with collaborative areas and wellness amenities. Technology, AI and sustainability driven workplace solutions are becoming increasingly prevalent across flex spaces, and this aligns with the broader vision of most GCCs in India.

With continued GCC expansion and evolving workplace strategies, what trends do you foresee shaping the future of co-working in India?

GCCs are no longer using flex spaces just as a temporary option, but as a strategic part of their workplace strategy. Flex spaces are expected to gain further ground, with a sharper focus on technology, data security and ESG alignment. At the same time, hub-and-spoke work models will gain traction, with GCCs expanding into Tier II cities to tap into newer talent pools and take advantage of comparatively lower real estate costs. Overall, flex spaces are expected to drive the India office market and help GCCs in balancing speed, scalability and employee experience.