How Global Capability Centres Are Driving Commercial Real Estate Growth in India
India’s commercial real estate (CRE) market is undergoing a structural transformation — and at the heart of it are Global Capability Centres (GCCs). According to the latest CBRE report, Q1 2025 witnessed robust leasing activity of 18 million sq. ft. across India, with GCCs accounting for a staggering 45% of the total space take-up. As companies pursue digitalisation, workforce agility, and cost optimisation, India’s emerging tech hubs have become hotbeds for expansion. For institutional investors, CRE strategists, developers, and GCC heads, this evolution signals both opportunity and urgency.
Why Are GCCs Catalysing CRE Growth in India?
Global Capability Centres are no longer back-end hubs — they’ve matured into strategic growth engines for Fortune 500 firms, driving innovation, operations, and R&D.
Key factors contributing to this surge:
- Talent-first strategies: India’s rich tech talent pool remains a prime draw for multinational firms.
- Cost-effective scale: Leasing commercial space in India offers significant cost arbitrage compared to global peers.
- Infrastructure readiness: Rapid Grade A office space development in cities like Bengaluru, Hyderabad, and Pune.
- Policy alignment: State incentives and urban planning support GCC setups, especially in Tier 1 cities.
As per the CBRE Market Monitor (Q1 2025):
“GCC expansion, both through consolidation and new entrants, is projected to account for 35–40% of office space absorption in key metros this year.”
Top Cities Powering the GCC-CRE Flywheel
<Infographic> Table: GCC-driven CRE demand by top cities (Q1 2025)
| City | Leasing Share (%) | Absorption (mn sq. ft.) | Key Sectors Active |
| Bengaluru | 35% | 3.4 | Tech, R&D, BFSI |
| Delhi-NCR | 21% | 3.8 | Consulting, BFSI |
| Hyderabad | 10% | 1.9 | Tech, Manufacturing |
| Pune | 8% | 1.5 | E&M, Life Sciences |
| Mumbai | 16% | 2.9 | BFSI, FMCG |
Which Sectors Are Fueling GCC Leasing Demand?
According to the CBRE report, sectoral leasing activity in Q1 2025 was led by:
- Banking, Financial Services & Insurance (BFSI) – 26%
- Technology – 24%
- Engineering & Manufacturing (E&M) – 11%
- Flexible Space Operators – 12%
Real estate trends indicate:
- BFSI and E&M are increasing digitalisation efforts, scaling India teams.
- Life sciences, semiconductors, and auto players are also showing demand.
- Established hubs like Mumbai, Bengaluru, and Hyderabad continue to attract tech-heavy GCCs.
How Are Developers Responding?
Developers and REITs are aligning infrastructure with evolving occupier needs:
- Workplace innovation: Emphasis on hospitality, collaboration zones, and tech integration.
- Sustainability focus: Green-certified office projects and energy-efficient design.
- Scalable assets: Flexibility in floorplates and configurations to support consolidation or phased growth.
Rental growth in Q1 2025 was seen in:
- BKC & BKC Periphery (Mumbai) – 2–5%
- ORR (Bengaluru) – 2–12%
- Golf Course Road (Gurugram) – 1–6%
What This Means for CRE Stakeholders
For institutional investors:
- GCC leasing dominance signals long-term demand stability.
- Markets like Pune and Hyderabad offer high-growth potential for investment property.
For GCC heads and CXOs:
- India continues to be a viable frontier for scalable GCC consulting
- Focus on tiered expansion models for redundancy, talent access, and policy leverage.
For CRE advisors and site selectors:
- Consolidation and Grade A preference present strong cases for large-format assets.
- Stay tuned to real estate trends like flexible workspace absorption and sector-wise shifts.
Final Takeaway: Why Now Is the Time to Act
Global Capability Centres are no longer support engines — they’re at the centre of India’s commercial real estate revolution. With 18 million sq. ft. absorbed in Q1 2025, and Bengaluru, Hyderabad, and Delhi-NCR dominating the charts, the message is clear: align your infrastructure, investment, and operations strategy with India’s expanding GCC ecosystem — or risk falling behind.
