Global Capability Centres Drive Office Space Growth In India

India’s Global Capability Centres (GCCs) are leading commercial real estate absorption, surpassing pre-Covid levels. Strong demand, a skilled talent pool, and cost advantages attract global corporations to the country.

According to JLL, GCCs committed 27.7 million sq ft of Grade A commercial real estate in 2024 and 24.1 million sq ft in 2023. These commitments accounted for 36% and 38% of total real estate absorption, respectively. Meanwhile, Knight Frank India reported that GCCs leased 22.5 million sq ft in 2024, representing 31% of total leasing volumes.

Breakdown Of Office Leasing Deals

Large deals (over 100,000 sq ft) totaled 12.1 million sq ft. Mid-sized deals (50,000-100,000 sq ft) added 4.4 million sq ft. Smaller deals (under 50,000 sq ft) accounted for 5.5 million sq ft.

India’s top seven cities recorded 50 million sq ft in net office absorption in 2024. This marks a 29% year-on-year increase from 38.64 million sq ft in 2023, according to Anarock Group.

Bengaluru, Hyderabad, NCR, MMR, and Pune continue to attract multinational corporations. These cities offer favorable business conditions, lower costs, and a strong talent base.

Market Outlook For 2025

The Indian office market is set for steady growth in 2025. Companies are adapting workplace strategies to enhance collaboration, innovation, and employee well-being. Hybrid work models remain popular, but firms are redesigning offices to boost productivity.

As the global technology sector recovers, demand for Grade A office spaces will increase. India’s GCC office space absorption will stay strong, reinforcing the country’s role as a top destination for corporate expansions.

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