India’s Global Capability Centres Drive Record Office Space Demand
10 APR 2025 / 03 min read
India’s top eight office markets have witnessed a 74% surge in gross leasing of office spaces in the January-March quarter, driven primarily by strong demand from foreign firms setting up Global Capability Centres (GCCs), according to Knight Frank India’s latest report.
India’s top eight office markets have witnessed a 74% surge in gross leasing of office spaces in the January-March quarter, driven primarily by strong demand from foreign firms setting up Global Capability Centres (GCCs), according to Knight Frank India’s latest report.
This significant growth underscores the increasing importance of GCCs in India’s office market, as global companies continue to leverage the country’s vast talent pool and favorable business environment to establish strategic hubs for innovation, research, and development.
GCCs, which are also known as Global In-House Centers (GICs), have become a crucial component of India’s IT and business services sector. These centers, typically established by multinational corporations, enable companies to tap into India’s skilled workforce, cost-effective operations, and favorable government policies. Over the years, GCCs have evolved from being mere back-office operations to becoming strategic hubs that drive innovation, digital transformation, and business growth.
The real estate consultant’s ‘India Real Estate: Office and Residential Report’ for Q1 2025 reveals that GCCs have been the major driver of office space demand, with leasing of 124 lakh square feet in the latest quarter, up from 50 lakh square feet in the year-ago period. This growth is a testament to India’s attractiveness as a destination for GCCs, with global companies such as Microsoft, Google, and Amazon already having established significant presence in the country.
Bengaluru has emerged as a key hub for GCCs, with gross leasing of office space jumping over three times to 127 lakh square feet in Q1 2025, from 35 lakh square feet in the year-ago period.
Hyderabad, Pune, and Mumbai have also seen significant increases in office demand, with leasing up 31%, 91%, and 24%, respectively. The report highlights the growing importance of GCCs in India’s office market, with global perception of India as a long-term investment destination continuing to strengthen.
“Q1 2025 was an exceptional period for the Indian office space market, with demand for GCCs consistently breaching new highs,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India. The report notes that pre-commitments have accounted for a significant portion of leasing activity, indicating a strong pipeline of demand for office spaces in the coming quarters.
While Delhi-NCR, Ahmedabad, and Kolkata have seen a decline in office leasing, the overall trend suggests that GCCs will continue to drive office space demand in India’s key cities. As global companies continue to expand their presence in India, the demand for high-quality office spaces is expected to remain strong, driving growth in the country’s real estate sector.
