Global Capability Centres to Drive 15-20% Office Space Growth in Next Two Years: Colliers Report
Global capability centres (GCCs) are set to drive a 15-20% growth in office space leasing over the next two years, according to a report by real estate consultancy Colliers. The technology sector continues to dominate demand, with BFSI, engineering, and manufacturing also contributing significantly.
Global Capability CentresOffice SpaceReal EstateTechnology SectorBfsiReal EstateSep 19, 2025
The report further notes that the share of GCCs in overall office leasing, which had dipped to less than 30% in 2022, has rebounded sharply to nearly 40% in 2025. This growth trajectory is expected to sustain, with GCC leasing projected at 60–65 million square feet during 2026–27, a 15-20% growth compared to the preceding two-year period.
The technology sector continues to dominate GCC demand with a 37% share, while BFSI, engineering, and manufacturing companies have driven 40% of space uptake. Among the seven cities, Bengaluru and Hyderabad have driven as much as 60% of GCC leasing since 2021, while Chennai has seen a 5.3x demand growth from offshore captive business units. The top 10 micro-markets attract over 70% of GCC demand since 2021, led by the outer ring road area of Bengaluru and the secondary business district (SBD) of Hyderabad.
“GCCs continue to remain the cornerstone of the office market demand, powering its ongoing scale-up. Capability centers are steadily evolving into innovation-driven, domain-specialized, and technologically integrated centers, and are likely to drive over 40% of the office space demand,” said Arpit Mehrotra, managing director, office services, at Colliers India.
In the next two years alone, GCCs are likely to lease 60-65 million square feet of Grade A space across the top seven cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune), unlocking significant real estate opportunities and fueling demand for high-quality spaces. Mehrotra added that GCCs will continue to anchor the domestic office space demand, supporting the ongoing scale-up and diversification. While technology firms continue to drive Grade A space uptake within GCCs, the demand is becoming broader, with BFSI, engineering, and manufacturing together expected to contribute 40–50% of leasing.
On the continuing demand growth in Bengaluru and Hyderabad, which have established themselves as leading GCC hubs leasing out over 60 million square feet since 2021, Mehrotra noted that both cities cumulatively drove more than 60% of total GCC demand during 2021-25. Bengaluru stands out as the premier hub not only for technology GCCs but also for global engineering and manufacturing firms. Mumbai, on the other hand, is favored by front-end BFSI players, while Pune attracts leading financial institutions, particularly for support service operations. In the East, Kolkata has become a natural choice for technology and consulting GCCs seeking a presence in that region.
American companies, led by Fortune 500 corporations, have been leading the GCC demand across the top seven cities, accounting for nearly 70% of total GCC absorption since 2021. Interestingly, in recent years, GCCs from England, MENA, and the Apac regions have also expanded their footprint. Of the estimated 28 million square feet uptake by GCCs in 2025, around 10% is likely to come from global corporates across Apac and primarily from Japan, Australia, and Singapore.
Frequently Asked Questions
What is the projected growth in GCC office space leasing over the next two years?
The demand for GCC office space is projected to grow 15-20% in the next two years, according to a report by Colliers.
Which sectors are driving the demand for GCC office space?
The technology sector continues to dominate GCC demand with a 37% share, while BFSI, engineering, and manufacturing companies are also significant contributors, driving 40% of space uptake.
Which cities are leading in GCC office space leasing?
Bengaluru and Hyderabad have driven as much as 60% of GCC leasing since 2021, while Chennai has seen a 5.3x demand growth from offshore captive business units.
Who are the leading companies leasing GCC office space?
American companies, led by Fortune 500 corporations, have been leading the GCC demand, accounting for nearly 70% of total GCC absorption since 2021.
What is the role of GCCs in the office market demand?
GCCs continue to remain the cornerstone of the office market demand, powering its ongoing scale-up and driving over 40% of the office space demand.
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