GCC Investments Revolutionizing India's Real Estate Sector: A Comprehensive Case Study

Synopsis

GCC investments are the driving force behind a dual boom in India's commercial (Grade A offices) and residential (mid-luxury, villas, gated communities) real estate sectors. This case study examines how metro and tier-2 cities are being transformed by employment-led growth, capital inflows, and infrastructure expansion.

Commercial Real Estate

The commercial real estate industry has broken all records and is now powering the office space sector’s transformation with GCCs leading the charge. At the end of 2025, the investment of Brookfield Asset Management of ₹9,000 crore for the building of the largest GCC in Mumbai’s Powai was an indicator of the magnitude of the shift. With a floor area of 2 million square feet, the project is backed by a leading global bank through a 20-year lease and, upon completion in 2029, will create direct and indirect employment of over 45,000 workers and run completely on renewable energy.

GCCs are already operational in India at approximately 1,700 current locations, with over 2,500 expected by 2030. This move will provide an influx of more than $100 billion in revenue. In the future, GCCs are expected to take up 50-55 million square feet more of Grade A office space by FY27, which would be a major share of 38-40% of such space in the top six markets.

Tier 2 Cities Enter the Mainstream

The December 2025 ceremony that marked the start of construction of Cognizant’s new campus in Visakhapatnam, worth ₹1,583 crores and with 8,000 seats, is a clear indication of the maturing of tier-2 cities as GCC destinations. The investment is part of a three-phase project to be completed by 2033 and represents the company’s strategy to gradually shift towards secondary cities after establishing delivery centers in Bhubaneswar, Indore, and GIFT City.

Bengaluru currently holds 40% of the GCCs, but other cities such as Pune, Coimbatore, and Chandigarh are becoming more competitive. The reasons for this expansion include lower operational costs, improved infrastructure, and an influx of skilled workers. Office rents in Hyderabad are 20-30% lower than in Bangalore, while the average rent for the best offices in India is only ₹88-176 per square foot per month, making India very competitive in the world market in terms of labor costs.

Residential Real Estate

The Employment-Housing Nexus

The connection between commercial office absorption and housing demand is directly and quantitatively traced. 8,000-10,000 new workers usually come to a city with each leasing of 1 million square feet of office space. The movement of people into the city is causing a great and diverse residential demand that ranges from family homes in the middle price segment to luxury villas and secured communities. Chennai had an 11% yearly growth in housing sales for the second quarter of 2025, despite a 20% drop across the country, thanks to the expansion of the GCC and the arrival of mid-segment supply at the right time, with the majority (79%) of new launches in the mid-income and premium housing segments catering to the GCC-prompted professional base.

Mid-Segment Housing and Spacious Living Preference

The trend of working from home has led to increased demand for large 3 BHK and gated communities. People working remotely need a separate area for office, exercise, and play. In Bengaluru, the demand for 3 BHK apartments is the largest, occupying 47% of the total demand, followed by 2 BHK houses, which hold 39%. The buyers’ preference for large, modern, and comfortable homes is very clear. It has been noticed that mid-sized homes with a size range of 1,250 to 2,000 Sq ft are the most demanded and supplied in all major cities.

Gate Communities, Villas, and Luxury Housing Boom

The premium residential areas are one of the thriving industries, driven by affluent buyers who prefer to live in gated communities and villas. They are attracted by the extra security, privacy, and a good lifestyle.

Among the high-end segment of villas in the Pune market, Marvel Selva Ridge Estate in Baner and Kolte-Patil Ivy Villas are prime examples, with prices ranging from ₹7.5-12 crore and ₹5.5-8 crores, respectively. These properties offer features like private infinity pools, smart-home automation, exclusive clubhouses, and multi-tiered security infrastructures.

Luxury property sales have skyrocketed 85% YoY in H1 2025, with almost 7,000 units sold in the seven leading cities. The major driving force behind this significant sales increase is High Net Worth Individuals, Ultra High Net Worth Individuals, and NRIs, who are investing in luxury homes not only to secure their wealth but also to enjoy a higher quality of life amid ongoing global uncertainties.

Growth of Residential Development in Tier 2 Cities

As per the H1 2025 report, tier 2 cities received 76 new deals valued at ₹31,000 crore and an additional 2,900 acres of undeveloped land, shifting the focus from traditional metropolitan cities. Due to the influx of funds into infrastructure, the support of local government agencies, and the establishment of new job centers, cities such as Pune, Ahmedabad, Lucknow, Coimbatore, and Chandigarh are experiencing rapid increases in property values.

Outlook

Investor interest in mixed projects along GCC corridors that combine office spaces with employee scenarios should be the focus to reap the rewards of 8-12% price appreciation and 7-10% rental yields. Employment has been the main factor for the rising demand for real estate in India for at least a decade, along with other aspects of infrastructure and sustainability.