Foreign Firms Lease 101 Million Sq Ft Office Space in India for GCCs Over Five Years: Colliers

US Companies Lead as GCCs Drive 36% of Workspace Demand Across Seven Major Cities​

Delhi, February 25: Foreign companies, largely headquartered in the United States, have leased 101 million square feet of prime office space across India’s seven major cities over the past five years to establish Global Capability Centres, according to Colliers India.

Data from Colliers shows that gross office leasing between 2020 and 2025 stood at 280.2 million square feet across Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. Of this, 101 million square feet was absorbed by foreign firms setting up GCCs, accounting for 36 per cent of the total workspace demand in these key markets.

US-based corporations alone leased 71 million square feet during the period to establish GCCs, underlining their dominant role in India’s evolving office real estate landscape.

Post-Pandemic Office Market Scaling Driven by Innovation-Focused GCCs​

Colliers noted that India’s office market has scaled up significantly in recent years, recording consecutive demand peaks in the post-pandemic period. The expansion has been driven by GCCs that have transitioned from cost-arbitrage centres to innovation-driven, globally integrated knowledge and research hubs.

Arpit Mehrotra, Managing Director, Office Services, Colliers India, projected that foreign entities could lease 35 to 40 million square feet annually for setting up GCCs in the coming years.

While demand for technology-led GCCs from US firms may stabilize, Mehrotra indicated rising traction from companies originating in the European Union and the United Kingdom. The growth is expected particularly in engineering and manufacturing, BFSI, and consulting segments.

GCCs Seen as Structural Shift in India’s Office Demand​

Industry stakeholders view the surge in GCC-led leasing as a structural transformation in India’s commercial real estate market.

Madhusudhan G, CMD of Sumadhura Group, said projections indicating GCCs could account for up to 50 per cent of India’s office demand reflect a long-term shift rather than a temporary cycle. He added that developers will need to recalibrate priorities toward Grade A+ assets, scalable and efficient floor plates, strong sustainability features, and hybrid-ready ecosystems.

Shesh Rao Paplikar, Founder and CEO of BHIVE Workspace, said the strong leasing activity demonstrates global companies’ confidence in India’s talent and business ecosystem. He noted that foreign firms are increasingly opting for managed flexible workspaces within co-working centres to establish GCCs.

Sijo Jose, Co-Founder and Director of Property Acquisition at SpazeOne, said global firms, particularly from the US and increasingly from the UK and EU, are expanding with a long-term strategy for India, signalling sustained demand for high-quality and scalable office environments.

Manas Mehrotra, Founder of Bengaluru-based 315Work Avenue, observed that the GCC landscape has diversified beyond technology and BFSI to include sectors such as retail, aerospace, and life sciences. He said these companies are expected to drive further demand for flexible co-working models that improve capital efficiency and mitigate risk.

He also pointed out that the trend is extending beyond Tier-1 cities, with GCCs increasingly exploring Tier-2 locations due to lower operating costs, broader labour pools, and improving digital infrastructure.

Foreign Firms Account for 41% of Leasing in Last Calendar Year​

In the last calendar year alone, foreign companies leased or absorbed 29.2 million square feet of office space, representing 41 per cent of the total 71.5 million square feet of gross leasing across the seven major cities.

Colliers projects that GCCs could contribute 40 to 50 per cent of total office demand in India in the coming years, reinforcing their central role in shaping the country’s commercial real estate growth trajectory.