Bengaluru has emerged as the leader in office space absorption by Global Capability Centers (GCCs) in India, accounting for 4.3 million square feet, according to a Knight Frank India – 3AI report released on July 26. The report also projects that the total office space taken up by GCCs in India will reach 26 million square feet by 2027, up from 19.69 million square feet in 2023.
Bengaluru is particularly favored for platform engineering and represents the highest IT/ITeS GCC-led office absorption across eight markets in the country. Within GCC-focused transactions, the IT/ITeS sector accounted for 53% of the overall office absorption in Bengaluru’s commercial market. Other significant contributors include manufacturing at 14%, BFSI at 12%, and healthcare at 5%.
GCCs, also known as global in-house centers or captives, are offshore units of large multinationals performing technology operations.
From 2018 to 2023, Bengaluru witnessed a total of 1,368 office deals by GCCs, with 983 deals in the under 50,000 sq ft bracket, 206 deals between 50,000 and 100,000 sq ft, and 179 deals above 100,000 sq ft. The weighted average rent in Bengaluru stands at ₹67 per square foot as of 2023.
“The future of GCCs in India is promising, with projections showing over 1,900 centers by 2025, employing around 2 million people,” said Sameer Dhanrajani, CEO of 3AI.
Pan-India Picture
Between 2018 and 2023, transaction activity grew by 16% with GCCs completing 6,667 office leasing deals across eight major cities. The report credits the ease of hiring talent and lower operational costs in India compared to global averages for this growth.
“India’s GCC market is expected to grow unabated over the next few years and already witnessed a high momentum with the current number of GCCs standing at around 1,600 plus in the country,” said Rahil Gibran, National Director of Occupier Strategy and Solutions, Bengaluru, Knight Frank India.
During this period, around 5,349 GCC-focused office deals were finalized under the 50,000 sq ft metric across the top eight cities. In this, 790 deals took place between 50,000 and 100,000 sq ft, while approximately 528 deals above 100,000 sq ft were the largest deals signed during the five-year period.
The continued expansion of GCCs in India highlights the country’s growing significance as a global hub for technology and business operations, driven by its talent pool and cost advantages.