Adobe StockMarket Radar India: GCCs fuel record demand as global capital returns
A deep dive into the GCC-driven office boom, rebounding APAC investment, and the forces shaping India's major real estate markets.
Written by Jorge Aguinaga
Global capital is flowing back into Asia-Pacific's real estate markets, but in India, a powerful domestic engine is firing on all cylinders. Global Capability Centres (GCCs) are driving record office demand, leasing nearly 20 million sqft this year as major firms like Citigroup and Accenture expand their Indian footprint, cementing the nation's place at the heart of global business transformation.
The Macro View
The Indian economy remains on a solid footing, with GDP growth at 7.4% and CPI inflation easing to 2.8%. This stability provides an encouraging backdrop for investment, which is showing clear signs of a turning point throughout the region.
After two years of decline, fundraising for Asia-Pacific commercial real estate has reaccelerated, with the average fund size hitting its highest level since 2008. Cross-border activity has surged, with USD 40 billion flowing into APAC in the last 12 months, primarily from North America. Alongside Australia and Japan, India stands out as a favoured market for this returning capital.
The Unstoppable GCC Engine
The most significant trend shaping India's market is the phenomenal growth of GCCs. GCCs have leased nearly 20 million sqft in the first nine months of 2025, accounting for approximately 40% of the country's overall office space demand. This has fuelled an 8% year-on-year growth in office space uptake across the top seven cities.
Major global firms are expanding their Indian presence. Citigroup has moved close to 1,000 tech jobs to its Indian support centres from China. Meanwhile, Accenture has proposed a new campus in Andhra Pradesh, aiming to eventually add about 12,000 jobs.
This expansion into Tier-2 cities like Visakhapatnam is a growing trend, as firms tap into lower costs and local talent. The shift is also being accelerated by US H-1B visa policy changes, which make scaling within Indian tech hubs more attractive.
Sector Spotlight: Key Cities
Latest data from the first half of 2025 shows how this demand is playing out across India's major office markets.
Bangalore: The nation's undisputed leader, Bangalore recorded nearly 5 million sqft of gross leasing in Q2 alone. GCCs are the primary driver, accounting for 40% of all leasing in the first half of the year. Strong demand has pushed the city-wide vacancy rate down to a tight 9.3%.
Mumbai: The city saw strong leasing of approximately 4 million sqft in Q2, propelled by flexible workspaces and the BFSI sector. This resulted in the highest Q2 net absorption ever recorded in the city, causing vacancy to fall despite a surge in new supply.
Delhi-NCR: The capital is poised for significant future growth, with a massive 5 million sqft of new office space expected to be added over the next two years.
Ahmedabad: Activity is heavily concentrated in GIFT City, which accounted for nearly 70% of the city's leasing in Q2. IT-BPM and BFSI firms are leasing space to capitalise on government incentives in the financial hub.
Amid the significant capital inflows and new market realities shaping Indian real estate, the conversation now turns to strategy. Explore the future of commercial real estate, family capital, and digital infrastructure with the industry's top leaders at the India GRI 2025 summit on October 9th in Mumbai.