GCCs Are Reshaping India’s Real Estate— And Its Cities
15 Apr 2025 / 03 min read
India’s cityscape is being rewritten—not just from the top down but from the inside out. The GCC wave is not a repeat of the BPO boom; it’s the next evolution. It’s deeper, more strategic, and far more inclusive.
More than two decades ago, the idea of Tier 2 and Tier 3 Indian cities becoming hotspots of global business operations seemed more aspirational than achievable.
Yet, it was then that India rode the global move to offshore, offering low-cost real estate and a vast pool of English-speaking graduates to giant corporations. India’s unparalleled cost arbitrage was the main draw. In practice, however, the metros dominated the industry—Bengaluru, Hyderabad, Pune, and Gurgaon—that later exploded into a full-blown BPO and KPO revolution in India.
Fast forward to today, and the game has changed. The rise of Global Capability Centres (GCCs) isn’t just a story about technology or cost arbitrage. It’s really a structural transformation— with far-reaching implications for real estate, urban infrastructure, and regional economic development.
Consider this. According to CBRE, GCCs are expected to account for 35–40% of total office space absorption in India’s top cities in 2025. More interestingly, they’re also fuelling expansion into Tier 2 cities—thanks to vastly improved digital and physical infrastructure, a stronger talent pipeline, and proactive state policies.
The city of Lucknow is a fine case in point. Twenty years ago, it was largely off the radar for global business. Today, it’s emerging as a serious contender—home to growing IT corridors, world-class roads, metro connectivity, and a pool of skilled technology and business professionals who no longer need to migrate to the metros for high-quality employment. It’s the same story with cities like Indore, Bhubaneswar, and Jaipur.
This decentralization is being accelerated by a new wave of GCCs operating in critical sectors like renewable energy, aerospace, and life sciences. India hosts over 1,700 GCCs that employ more than 1.9 million people, with over 30 of them focused on clean and renewable energy. These are centres that are indeed innovating in sectors that are key to India’s longer-term growth and crucially lie at the intersection of sustainability, AI, and automation—driving real impact for both global corporations and India’s economy.
What’s powering this transformation? That the central question today. First, a deep and growing STEM talent pool—India produces 2.5 million STEM graduates and 1.5 million engineers annually. Second, robust digital infrastructure and energy supply, which allow complex operations to function seamlessly in smaller cities. Third, a marked improvement in law and order, ease of doing business, and local governance.
Real estate developers are taking notice. Demand is shifting not just in volume but in quality. From bland office parks to high-performance smart campuses with co-working spaces, green buildings, and integrated mobility—GCCs are reshaping what commercial real estate in India looks like.
The real estate ripple extends beyond offices to residential demand, education, healthcare, and lifestyle ecosystems around these new economic hubs.
India’s cityscape is being rewritten or rewired—not just from the top down but from the inside out. The GCC wave is next evolution of the India’s BPO boom and it’s deeper, more strategic, and far more inclusive. For once, the promise of Tier 2 and Tier 3 cities are not flattering to deceive as it isn’t just promise—it’s performance.
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