GCCs Drive India’s Office Leasing with 37% Share, Bengaluru Leads the Way

India’s office market shattered records in 2024, with global capability centres (GCCs) playing a pivotal role in achieving historic leasing levels. According to a report by CBRE, the year saw a gross absorption of 79.0 million sq ft, a 16% YoY growth.

GCCs accounted for 37% of the total office leasing activity in 2024, solidifying their importance in India’s commercial real estate market. BFSI firms and technology companies contributed 44% of GCC leasing, showcasing their integral role in the office sector’s growth.

When it comes to distribution based on different cities, Bengaluru led the GCC leasing segment with 34% share, with Hyderabad at second place with 20% share. They were followed by Delhi-NCR (12%), Mumbai (11%), Pune (10%), and Chennai (9%). Ahmedabad, Kolkata, and Kochi collectively contributed 4% of GCC leasing during the quarter.

Bengaluru, Hyderabad, Mumbai, and Delhi-NCR dominated the market in 2024, contributing 73% of the total leasing activity. Technology companies and flexible space operators led the charge, followed by BFSI firms. Domestic firms also remained key players, driving 50% and 45% of leasing activity on a quarterly and annual basis, respectively.

The October-December period saw the highest quarterly leasing activity, with 22.2 million sq ft absorbed—an 8% QoQ rise. Mumbai, Hyderabad, and Bengaluru emerged as hotspots, collectively accounting for 66% of the absorption during the quarter.

Overall, Bengaluru led office space absorption in 2024, accounting for 28% of the total leasing activity, followed by Hyderabad (16%) and Mumbai (15%). Domestic firms remained the largest contributors, driving 45% of total leasing, with companies from the Americas contributing 34%, EMEA 16%, and APAC 5%.

New project completions reached 52.3 million sq ft during the year, with 16.1 million sq ft added in Q4 alone, a 15% QoQ increase. Over half of the newly completed spaces in Q4 were green-certified, reflecting a growing focus on sustainable development.

While earlier speaking with AIM, Mohandas Pai, founder of Aarin Capital and former CFO of Infosys, said that while all states will try to attract companies, the incentive of concession on land and power alone is not enough to lure GCCs away from Bengaluru. 

Pai highlighted that companies prefer employees who are ready to join immediately, as setting up GCCs doesn’t take much time. GCCs employ over 2.2 million people in India, with major hubs in Bengaluru, Hyderabad, and Mumbai, as revealed by AIM Research. On the lines of CBRE report, AIM Research, too, notes that Bengaluru holds the largest share of 34%, highlighting its position as India’s top hub for GCCs. This is supported by the city’s strong IT industry connection, skilled workforce, and good infrastructure.