How GCCs Are Reshaping India’s Commercial Real Estate Landscape

• GCCs account for around 40% of office space absorption in India

• Tier-2 cities emerge as new GCC hubs beyond major metros

• Demand shifts toward Grade-A, tech-enabled, flexible offices

India’s office real estate market is undergoing a structural shift, driven by the rapid expansion of Global Capability Centres (GCCs). As 2025 nears its close, GCCs contribute close to 40% of total office space absorption, underscoring India’s growing role as a global innovation and leadership hub rather than just a cost-efficient destination.

From cost centres to strategic hubs
Earlier, multinational companies set up GCCs in India mainly to optimise costs. That model has evolved. Today, GCCs host core functions such as artificial intelligence development, cloud engineering, cybersecurity operations, and enterprise product design.
“A GCC today is not a back office. It’s where critical engineering, product building, and decision-making increasingly happen,” said Ankur Goel, Founder & CEO of GatewAI, a GCC services enabler.

This shift has significantly altered office requirements. Companies now seek large campuses with engineering pods, leadership zones, innovation labs, and secure delivery areas—pushing demand for modern, well-equipped commercial spaces.

Existing GCCs drive expansion-led leasing
Many global firms are expanding their India-based GCCs as they transfer responsibilities like R&D, automation, and platform engineering from global headquarters. As teams grow, office footprints expand in tandem.
“Once a GCC becomes enterprise-critical, expansion is no longer optional. Real estate growth follows business responsibility,” Goel noted.

This trend is resulting in sustained leasing activity, particularly for long-term, scalable office assets.

Tier-2 cities step into the spotlight
While Bengaluru, Hyderabad, and Pune remain key GCC hubs, expansion is increasingly moving to Tier-2 cities such as Coimbatore, Kochi, Indore, Jaipur, and Ahmedabad. These locations offer strong talent pools, lower attrition, competitive rentals, and supportive state policies.
“Global firms are actively looking beyond saturated metros to build scalable GCCs,” Goel said.

Each new GCC entry accelerates demand for Grade-A offices, infrastructure upgrades, and the emergence of new business districts in these cities.

Hybrid work reshapes, not reduces, office demand
Hybrid work has changed how offices are designed and used—but not their importance. GCCs still require secure environments, collaborative engineering floors, innovation labs, and client-facing zones.
“Hybrid work has shifted the focus from seat count to workspace quality,” Goel explained.

This has increased demand for flexible, technology-enabled spaces rather than traditional, high-density layouts.

Grade-A offices become the new baseline
GCCs increasingly prefer buildings with strong digital infrastructure, green certifications, advanced security, and modular designs. Developers across India are responding by upgrading specifications and design standards.
“GCC demand has raised the benchmark for commercial buildings across cities,” Goel said.

Real estate strategy is now closely tied to talent access, productivity, and long-term business growth, prompting senior leadership involvement in office decisions.

States compete to attract GCC investments
State governments are rolling out faster approvals, dedicated technology zones, and ready-built campuses to draw GCC investments. According to Goel, “GCCs are now seen as long-term economic anchors by state administrations.”

Overall, GCC-led demand reflects a deeper shift in global work distribution. India’s GCC offices are no longer support centres—they are becoming global engines for innovation, leadership development, and strategic execution.