How GCC Investments Are Reshaping India's Real Estate Landscape
The establishment of Global Capability Centres (GCCs) as offshore innovation hubs by multinational companies has been the major driver behind the expansion of these centres in India. The investment cycle has significantly altered the property landscapes of metropolitan and emerging tier-2 cities, creating various segments with abundant opportunities.
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 a clear 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 for over 45,000 workers and run completely on renewable energy.
GCCs are already operational in India at approximately 1,700 current locations and are expected to increase to over 2,500 by 2030. This move will bring an influx of more than $100 billion in revenue. By FY27, GCCs are projected to take up 50-55 million square feet more of Grade A office space, which would represent a major share of 38-40% of such space in the top six markets.
The December 2025 ceremony marking 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.
Currently, Bengaluru holds 40% of the GCCs, but other cities like Pune, Coimbatore, and Chandigarh are becoming more competitive. The reasons for this expansion are multiple: businesses are encouraged to relocate due to lower operational costs, improved infrastructure brings better connectivity, and there is an influx of skilled workers. Office rents in Hyderabad are 20-30% lower than in Bangalore, and 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.
The connection between commercial office absorption and housing demand is directly and quantitatively traced. For every 1 million square feet of office space leased, approximately 8,000-10,000 new workers move into the city. This influx is causing a diverse residential demand, ranging from family homes in the middle price segment to luxury villas and secured communities. Chennai saw an 11% yearly growth in housing sales in the second quarter of 2025, despite a 20% drop across the country, thanks to the expansion of GCCs and the timely arrival of mid-segment supply. The majority of new launches, 79%, were in the mid-income and premium housing segments, catering to the GCC-prompted professional base.
The trend of working from home has led to increased demand for large 3 BHK apartments and gated communities. People working remotely need separate areas 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 at 39%. The preference for large, modern, and comfortable homes is evident, with mid-sized homes ranging from 1,250 to 2,000 square feet being the most demanded and supplied in all major cities.
The premium residential areas are thriving, driven by affluent buyers who prefer to live in gated communities and villas. They are attracted by the extra security, privacy, and a high-quality lifestyle. In the Pune market, luxury villas like Marvel Selva Ridge Estate in Baner and Kolte-Patil Ivy Villas, priced at ₹7.5-12 crore and ₹5.5-8 crores respectively, offer features like private infinity pools, smart-home automation, exclusive clubhouses, and multi-tiered security infrastructures.
Luxury property sales have surged 85% YoY in H1 2025, with almost 7,000 units sold in the seven leading cities. High Net Worth Individuals, Ultra High Net Worth Individuals, and NRIs are investing in luxury homes to secure their wealth and enjoy a higher quality of life amidst global uncertainties.
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.
Investor interest in mixed projects along GCC corridors, combining office spaces with employee housing, should be the focus to reap the rewards of 8-12% price appreciation and 7-10% rental yields. Employment has been the main factor driving the rising demand for real estate in India for at least a decade, along with other aspects of infrastructure and sustainability.
