GCCs in Bengaluru, Hyderabad, and Pune: Driving India's Commercial Real Estate Market

The Global Capability Centres (GCCs) stand out as one of the most significant and powerful forces driving the Indian commercial real estate market in 2025. Currently, India is one of the fastest-growing markets in the global GCC sector, capitalizing on strong talent bases, cost competitiveness, and conducive government policies. This trend has significantly impacted India’s office property market, giving a major push to large office spaces, hybrid working, and flexible workspaces that continuously emphasize agility and scalability.

The size of the Indian commercial realty market, pegged on economic activity, ranks fourth largest in the world with a value of $50-60 billion. It is set to touch $120-130 billion by 2030. The GCC hubs are likely to develop 160 – 200 million sq. ft. of office space by 2030. Today, India hosts over 1,850 GCCs, employing 2.2 million professionals.

Impact on Office Space Driven by GCCs

The Indian flexible office space market offers a contribution of 65-80 million sq. ft., which is expected to reach $9-10 billion by 2028. The focus of demand is on high-end, ‘tech-ready’ properties, smart properties, large floor plate properties, and those with robust Environmental, Social, and Governance (ESG) standards. GCCs are also propelling significant leasing, mostly in tech hubs like Bengaluru, Hyderabad, and Chennai, and extending to Tier 2 cities. Offices are turning into innovation hubs with areas that allow both work and play to entice talent. Cities like Visakhapatnam and Coimbatore are emerging as GCCs balance talent availability and cost with the use of satellite offices.

India as a GCC Hub in Various Cities

The expansion of GCCs is no longer limited to metro regions such as Bengaluru, Hyderabad, Mumbai, Chennai, or Pune. New regions like Coimbatore, Kochi, Jaipur, and Ahmedabad are becoming attractive due to the support of talent, property affordability, and low employee attrition. This results in quicker occupation of Grade A office spaces, development of infrastructure, and the growth of business districts. The states are offering quicker approval, technology zones, and operational campus spaces to the industry. Mid-tier IT companies need plug-and-play offices, and Tier 2 or Tier 3 cities account for a projection of 13-15% in hiring.

Supporting Schemes Boosting GCCs in India

The growth of GCCs in India is supported by strong policy tailwinds. Schemes like the Modified Electronics Manufacturing Clusters (GENISIS) innovation schemes, skills for the digital age under FutureSkill Prime, and easing of clearances through ease of business initiatives at the state and central government levels are enabling global companies to grow quickly in these areas. India has eased FDI policies and SEZ policies, making it favorable for the entry and growth of GCCs. GCCs have evolved from mere back offices for administration, finance, human resources, and other support functions to strategic innovation centers for engineering R&D, particularly in Aerospace, Defense, Semiconductors, and Advanced Manufacturing.

India’s GCC City-Level Dynamics

Hyderabad is emerging as a hub for GCCs, attracting mid-sized companies looking for cost-effective locations. Companies like Netflix, Eli Lilly, Costco, and McDonald’s have set up operations in Hyderabad, joining over 70 GCCs, including the large French beauty company L’Oreal. Bangalore is a pioneer in deep tech, AI, R&D, and digital manufacturing, attracting significant investments and talent. Delhi is a multi-sector powerhouse with strong capabilities in BFSI consulting and technology. Chennai and Pune focus on engineering, manufacturing, and BFSI. Tier 2 cities like Indore, Bhubaneswar, Visakhapatnam, and Kochi are growing fast due to lower operational costs and talent attraction by players like Cognizant. Tier 1 cities show an 86-87% implied recruitment demand.

Investment Trends Analysis

GCCs are transforming into innovation hubs in AI, ML, Cybersecurity, and sustainability. Private equity firms like KKR and Blackstone are pushing portfolio firms to open GCCs in India. Some upcoming companies in the market include Dai-ichi Life, Jaggaer, eBay, and Ferguson. The GCC sector is anticipated to reach $100 billion with the presence of 2,200+ GCCs in the market by 2030.

GCC Leasing Potential in India: 2025 – 2030

The estimated GCC leasing in India is 120-246 million sq ft, based on global business conditions. The sectors that GCCs are leasing space to include 16% in Automotive, 9% in Life Sciences, and 5% in semiconductors. As per a report by Savills in 2020-24, 77% of leased area in Bengaluru, Hyderabad, and Pune is in IT-BPM, while 64% in BFSI is in Mumbai, Pune, and Hyderabad. Engineering and manufacturing account for 78% in cities like Bengaluru, Pune, and Chennai, and 86% in Healthcare & Pharma in Hyderabad, Bengaluru, and Pune.

Hiring Rebounds

GCCs provide an average compensation rate that is 12-20% higher than that offered by regular technology product and service companies and non-technology companies indirectly hiring technology talent. The expansion of growth driven by GCCs contributes to roughly 27% of the overall requirement measure. The hiring in the Information Technology services sector will increase by 12-15% in 2026, led by the expansion of GCCs and AI First Cloud and Cyber initiatives.

Future Outlook

Looking ahead, the role of GCCs in shaping the Indian commercial realty market and economic system is only going to accelerate. The number of GCCs is projected to rise from 1,800+ at present to over 2,400 in 2030. This will further accelerate the leasing of offices and real estate. With the rising percentage of office absorption each year, GCCs are forecasted to be the single biggest space occupier in the top office markets of India. The market for flexible workspace and hybrid office space is expected to see accelerated demand along with Grade A office spaces as organizations strive for flexibility in workspace strategy and Opex models. Government initiatives and policies to make India an attractive innovation destination would continue to drive demand. Skill development strategies, infrastructure, and business facilitation would be critical in shaping policies. Along with increasing costs in the primary destinations, Tier-2 cities are also being recognized as possible winners with lower costs of real estate and development of new GCC points. Many MNCs and tech companies are providing opportunities for young talent with AI/ML and other skills.

Conclusion

Global Capability Centres have significantly shaped the paradigm of India’s commercial real estate industry. Indian commercial real estate has evolved into a primary driver of large-scale leasing of offices and has emerged as a shaping factor in the demand for flexible working space and a city’s competitiveness.