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Colliers India expects global capability centres (GCCs) to drive as much as 40-50% of India's Grade A office space demand across the top seven cities over the next few years, supported by strong economic growth and improving global trade linkages. US-headquartered firms continue to dominate GCC leasing, accounting for nearly 70% of space taken up since 2020, although demand from the UK and European Union is projected to rise steadily. According to the consultancy, annual GCC leasing could scale up to 35-40 million sq ft as trade agreements with the US, EU and UK reduce market entry barriers and encourage multinational firms to expand India operations across technology, BFSI, engineering and consulting. This shift is expected to further entrench GCCs as a core driver of India's office market.
India's office real estate market is set to witness sustained demand from global capability centres, with Colliers India projecting that GCCs could contribute up to half of overall office space absorption across the country's top seven cities in the coming years. The outlook is underpinned by India's macroeconomic resilience, with the International Monetary Fund recently revising its 2026 GDP growth forecast upward to 6.3% and projecting growth of 6.5% in 2027, supported by strong domestic demand and improving trade relations. Advertisement
Colliers notes that ongoing and proposed trade agreements with the US, EU and UK are likely to enhance India's long-term export competitiveness while reducing regulatory and market access barriers for global firms. As a result, multinational companies are expected to deepen their India presence, particularly through GCCs that increasingly function as centres for research, engineering, advanced analytics, artificial intelligence and product development rather than cost-arbitrage back offices.
Between 2020 and 2025, India recorded cumulative Grade A office leasing of about 310 million sq ft, of which GCCs accounted for roughly 117 million sq ft, or 38%. Annual GCC leasing has nearly doubled over this period, rising from around 16 million sq ft in 2020 to close to 30 million sq ft in 2025, pushing their share of overall leasing beyond 40% in the past year. US-based GCCs continue to dominate demand, contributing nearly 70% of total GCC leasing since 2020, largely driven by technology and BFSI occupiers.
However, Colliers highlights a gradual diversification in demand sources. EU-origin GCCs are primarily anchored in engineering and manufacturing, while UK-based firms show a more balanced mix led by BFSI and consulting. Tariff rationalisation and improved access under India EU and India UK trade engagements are expected to indirectly boost office demand from these segments, moderating the overwhelming dominance of US firms over the medium term.
According to Arpit Mehrotra, managing director, office services at Colliers India, annual GCC leasing could stabilise at 35-40 million sq ft, accounting for 40-50% of total office demand. He adds that while technology-led GCCs will remain central, incremental growth is likely to come from BFSI, engineering and manufacturing, and consulting firms.
Vimal Nadar, national director and head of research at Colliers India, notes that the evolving demand profile reflects India's alignment with high-value, domain-intensive global functions. With skilled talent availability and cost efficiencies continuing to favour India, GCCs are expected to remain the primary anchor for the country's office market in the foreseeable future.
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