Global Capability Centres Drive Demand in India's Office Space Market

Foreign firms, notably US-based, have secured more than 100 million square feet of prime office space in India's major cities over the past five years to establish Global Capability Centres (GCCs), according to Colliers India. This contributes to 36% of the total workspace demand across key cities such as Bengaluru, Delhi-NCR, and Mumbai.

Colliers' data highlights GCCs as catalytic in transforming India’s office market, with leasing expected to maintain a 35-40 million square foot pace annually. Experts like Arpit Mehrotra foresee stabilisation in US-technological-based GCC demand, with EU and UK firms showing increased interest, particularly in sectors like engineering and BFSI.

Industry leaders like Madhusudhan G and Manas Mehrotra emphasize the need for real estate adaptation to this trend, pinpointing the preference for scalable, high-quality workspaces. As GCCs impressively expand, Tier-2 cities emerge as attractive alternatives for cost-effective operations and abundant talent pools.