India’s GCC Space Demand Set to Reach 40 Million Sq Ft Annually as Expansion Extends Beyond Tech Sector: Colliers
Bangalore, July 24, 2026: Global Capability Centres (GCCs) in India are rapidly expanding beyond their traditional roots in the technology sector, with annual office space uptake projected to reach 35 to 40 million sq ft over the next two years. According to the latest report by real estate advisory firm Colliers, titled “GCCs in India: Global leadership through scale, competitiveness, talent & innovation,” these centres have evolved from operational back-offices into strategic hubs driving artificial intelligence, engineering, analytics, research and development, and digital excellence. Supported by a deep STEM talent pool, competitive real estate costs, and high-quality infrastructure, GCCs are expected to anchor nearly half of India’s overall Grade A office space demand through 2026 and 2027, Colliers India said in a press release.
Since 2021, GCCs have leased approximately 118 million sq ft of Grade A office space across India’s top seven cities, representing 37% of the nation’s total office absorption. This momentum has accelerated further in the first half of 2026, with GCCs claiming 16.6 million sq ft, or a notable 46% share of total Grade A leasing activity. Analysts project that annual absorption will continue its upward trend, cementing India’s position as a primary global innovation hub.
“India has firmly established itself at the epicenter of GCC-led innovation, combining talent superiority, cost arbitrage & technological prowess with policy push & a supportive business environment. As multinational corporations continue to scale up their operations in India, office space demand is expected to continue to be fueled by large-scale capability centres at the forefront of AI-driven innovation. Going forward, over the next two years, GCCs are expected to drive 45-50% of India’s office space demand, taking up around 35-40 million sq ft of Grade A space annually. This is expected to create multiple opportunities for developers and investors alike, simultaneously strengthening the country’s position in the global commercial real estate market,” says Arpit Mehrotra, Managing Director, Office Services, Colliers India.
While the technology sector remains the largest contributor to GCC leasing—accounting for 39% of cumulative demand since 2021 and 49% in H1 2026—other industries are rapidly scaling their physical presence. The Banking, Financial Services, and Insurance (BFSI) sector accounted for 22% of total demand since 2021, expanding its space uptake nearly three-fold between 2021 and 2025. Similarly, Engineering and Manufacturing firms accounted for 16% of leasing activity over the same period, growing their footprint by more than 2.5 times as specialized domain clusters emerge across major markets.
“As India’s office market continues to scale new heights, GCCs remain at the forefront of its growth story. While the Technology sector is likely to remain dominant and account for 40-50% of the GCC leasing in 2026, other demand sectors are expected to witness significant traction in coming years. BFSI and Engineering & Manufacturing GCCs are poised to cumulatively drive over one-third of annual office space demand in the next few years. Interestingly, GCCs across demand sectors are likely to increasingly adopt flex spaces within their real estate portfolios by prioritizing agility, speed-to-market, workforce flexibility and cost rationalisation,” says Vimal Nadar, National Director & Head of Research, Colliers India.
Geographically, Bengaluru and Hyderabad continue to dominate the market, together accounting for over 60% of total GCC space absorption since 2021. However, demand is becoming increasingly broad-based across other Tier I cities as regional ecosystems mature. While Bengaluru and Hyderabad remain the top choices for technology firms, Mumbai and Pune are establishing themselves as hubs for BFSI operations, and Chennai is seeing accelerated growth from Engineering and Manufacturing GCCs, recording an over four-fold increase in leasing in 2025 compared to 2021 levels. Micro-markets such as Outer Ring Road (ORR) in Bengaluru and Secondary Business Districts (SBD) in Hyderabad remain highly sought-after, with the top 10 micro-markets across the country driving over 70% of total GCC demand.
