Global capability centres are redefining prime locations in India

From City-Led Growth to Corridor-Led Strategy

India’s global capability centre (GCC) landscape has entered a new phase of maturity, moving beyond a single-city selection model towards a more granular, corridor-driven strategy.

Organisations are no longer limited to established hubs such as Bangalore or Pune, instead evaluating corridors based on long-term scalability, workforce mobility, infrastructure readiness, hybrid work patterns, and expansion potential.

As a result, the concept of a “winning location” has been redefined, with leading occupiers adopting phased growth strategies that begin in established corridors and gradually expand into emerging micro-markets capable of supporting larger, integrated campuses.

During the GRI Offices India 2026 conference, senior executives gathered to discuss how this evolution is reshaping GCC expansion strategies, strengthening the link between occupier requirements, infrastructure development, and long-term urban growth planning.

Southern Markets Continue to Lead Absorption

Across India’s office landscape, GCC occupiers remain the dominant force behind leasing momentum. The latest CBRE India report indicates that 44% of total leasing absorption is driven by GCC demand, underlining the sector’s central role in shaping the country’s office growth trajectory.

Out of 20.7 million square feet absorbed nationally, GCCs accounted for 9.1 million square feet, marking an all-time high. Notably, 74% of this activity is concentrated in southern markets, led by Bangalore (48%), Hyderabad (19%), and Chennai (7%).

In contrast, approximately 12% of leasing is distributed across the western corridor, comprising Pune (9%) and Mumbai (3%).

The continued strength of southern cities is largely attributed to aggressive expansion from US-based technology and e-commerce players, alongside structural advantages in cost and talent availability.

These markets benefit from well-established supply pipelines, while the western corridor continues to see diversified demand from sectors such as BFSI and technology, often within tighter supply conditions.

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Infrastructure Readiness Becomes a Priority

As GCC operations evolve into more technologically advanced environments, modern occupiers now expect office assets to function not only as workplaces but as technology-enabled operational hubs capable of supporting complex, data-intensive workloads.

Infrastructure readiness is therefore becoming a decisive factor in site selection, with organisations placing greater emphasis on enhanced power capacity, IoT-enabled systems, advanced cooling solutions, and predictive maintenance technologies.

Artificial intelligence is accelerating this shift further. As organisations integrate automation and advanced analytics into core workflows, location decisions are increasingly evaluated through the lens of long-term technological capability rather than immediate cost advantage.

Equally important is the adaptability of the built environment, with occupiers assessing whether assets can accommodate evolving operational models, including hybrid configurations and data-intensive requirements. Floor plate flexibility, vertical logistics capability, and long-term expansion potential are becoming key decision drivers.

Beyond the building itself, the surrounding ecosystem is increasingly critical. Strong integration with transit networks, social infrastructure, and mixed-use environments has emerged as a key differentiator in competitive leasing markets.

Tier 2 Cities: Opportunity Balanced with Execution Risk

While Tier 1 cities continue to dominate large-scale GCC activity, Tier 2 markets such as Coimbatore, Kochi, Trivandrum, Mysore, and Ahmedabad are emerging as strategic complements rather than direct substitutes.

However, this transition is not without complexity, as locations must offer sufficient talent depth to support both initial operations and long-term scalable growth. Organisations therefore need to assess workforce availability across all levels, from entry-level graduates to senior leadership, before committing to long-term investments.

Infrastructure readiness also remains a defining factor, with companies evaluating developer capability, connectivity, and long-term urban development trajectories to ensure early-stage investments are future-proof.

At the same time, Tier 2 markets provide valuable flexibility within diversified operating models. By distributing operations across multiple cities, corporations can reduce geographic concentration risk while accessing expanding talent pools.

Multi-City Models Shape Future Portfolios

Organisations are increasingly adopting multi-city operating models to mitigate risks arising from natural disasters, infrastructure disruptions, and geopolitical uncertainty. Historical events, including flooding in major Indian cities, have reinforced the importance of geographic diversification.

This shift is driven not only by risk management considerations but also by a broader strategic objective to balance scale and flexibility, leveraging established urban centres while accessing emerging talent pools in secondary markets to enhance long-term efficiency and operational resilience.

ESG and Workplace Quality Take Centre Stage

Environmental, Social, and Governance (ESG) considerations have moved from secondary priorities to core decision-making criteria within the GCC ecosystem. Sustainability performance is now closely linked to brand positioning, talent attraction, and long-term operational efficiency.

According to CBRE data, approximately 80% of GCC leasing activity takes place in green-certified buildings, while nearly 78% of demand is concentrated in assets less than ten years old, reflecting a clear preference for modern and energy-efficient infrastructure.

This shift is further reinforced by evolving workforce expectations, with sustainability metrics becoming increasingly visible to employees and candidates, and directly influencing both recruitment outcomes and retention.

As a result, organisations are prioritising campuses that integrate wellness, energy efficiency, and low-carbon operations within broader corporate responsibility frameworks.

Execution Emerges as the True Differentiator

Execution quality is emerging as the key differentiator between successful and underperforming developments in India’s rapidly scaling GCC landscape. Delivery timelines, developer credibility, and operational reliability are becoming central to long-term occupier confidence.

Success in this evolving environment will depend on aligning talent, infrastructure, sustainability, and resilience within a cohesive location strategy.

As GCCs continue to reshape India’s office landscape, the next phase of growth will be defined not only by location choices, but by the effectiveness with which organisations execute long-term strategies across an expanding network of high-performance corridors.