How GCCs are Reshaping India's Commercial Real Estate Market

Global Capability Centres (GCCs) are playing a growing role in India’s commercial real estate market. As 2025 approaches its end, GCCs account for nearly 40 percent of total office space absorption in the country. This trend shows how global companies now view India as a long-term base for innovation and leadership, and not only as a cost-saving destination. This shift is reshaping demand for office space across cities.

Why GCCs are Fueling This Growth

India’s role in global innovation has expanded. Companies earlier set up GCCs in India mainly to cut costs. That approach has changed. Firms now come to India for AI talent, cloud capabilities, cybersecurity teams, and product development strength.

“A GCC today is not a back office. It is where core engineering, product building, and enterprise decision-making increasingly happen,” said Ankur Goel, Founder & CEO of GatewAI, a GCC services enabler.

Modern GCCs require engineering pods, secure delivery areas, leadership zones, and innovation labs. This has increased demand for large, modern office campuses.

Existing GCCs Are Expanding Fast

Many established GCCs are growing rapidly as global companies move functions such as research and development, automation, platform engineering, and cybersecurity to India. As these roles expand, headcount and office space needs rise.

“Once a GCC becomes enterprise-critical, expansion is no longer optional. Real estate growth follows business responsibility,” Goel said. As GCCs take on more ownership, companies invest more in physical infrastructure.

Tier-2 Cities Are Gaining Importance

GCC expansion is no longer limited to Bengaluru, Hyderabad, or Pune. Cities like Coimbatore, Kochi, Indore, Jaipur, and Ahmedabad are emerging as new destinations due to talent availability, lower attrition, affordable real estate, and policy support.

“We are seeing global firms look beyond metros to build scalable GCCs without the pressure of saturation,” GatewAI's Ankur Goel said.

Each new GCC in a Tier-2 city leads to faster leasing of Grade-A offices, infrastructure growth, and the creation of new business districts.

Hybrid Work Has Changed Office Needs

Hybrid work did not reduce the need for offices. Instead, it changed how offices are used. GCCs still require secure spaces, connected engineering floors, innovation labs, and client-facing zones.

“Hybrid work has shifted the focus from seat count to workspace quality,” Goel said. This has increased demand for flexible, technology-ready offices.

Impact on India’s Real Estate Market: Grade-A Offices Becoming Standard

GCCs prefer offices with strong digital infrastructure, security systems, green certifications, and modular layouts. Developers are now designing projects to meet these needs.

“GCC demand has pushed developers to raise the benchmark for commercial buildings across cities,” Goel said.

Office location and design now affect talent access, productivity, cost efficiency, and long-term growth. Senior leadership teams are increasingly involved in real estate decisions.

“Office strategy is now a boardroom discussion because it directly shapes business outcomes,” GatewAI's Ankur Goel said.

Cities Are Competing for GCC Investments

State governments are offering faster approvals, dedicated technology zones, and ready-to-use campuses to attract GCCs. This competition is accelerating real estate development across regions.

“GCCs are now treated as long-term economic anchors by state administrations,” Goel said.

GCC-led office demand reflects a larger shift in where global work happens. GCC offices in India now function as centres for product development, innovation, cybersecurity, and leadership training.

“When companies expand their GCC footprint, they are moving strategic capability, not just adding desks,” Goel said.