Global capability centres fuel premium play in India's office space

Demand for Grade-A, ESG-compliant, smart offices on the rise

Global Capacity Centres (GCCs) are fueling the premiumisation of India's office real estate market, driven by their demand for Grade-A, ESG-compliant buildings equipped with advanced smart technology systems — critical to achieving their sustainability goals.

 

GCCs are opting for premium real estate, not only to bolster brand reputation, but to attract and retain top talent, improve operational efficiency, and enhance employee productivity. These standards have made their office selection process more stringent than ever.

 

This growing demand has had a positive impact on the Indian office market. It has also led to a surge in premium office space, higher penetration of green-certified buildings, and increased rental values across the top commercial hubs—benefiting developers significantly.

 

“As global companies raise their expectations, we are seeing premiumisation across India's office market, with ESG standards, Grade-A buildings, and smart technology becoming baseline requirements,” said Ramesh Nair, managing director, and CEO, Mindspace Reit. 

 

Between 2022 and the first half of 2024, GCCs have leased 53 million square feet (msf) of office space. In 2024, they accounted for 36 per cent of total leasing activity, occupying 27.7 msf of the 77.2 msf transacted, said Smitha Hemmigae, managing director at ANSR, which partners global firms design, build, and operate GCCs.

 

The momentum has continued into Q1 CY25. Colliers reported that GCCs absorbed 6.5 msf of Grade-A office space in the quarter — constituting 41 per cent of overall office space demand across the top seven cities in India.

 

“GCCs have consistently upheld stringent office selection norms and have been instrumental in pushing developers to pursue green certifications,” said Arpit Mehrotra, MD, Office Services, Colliers India.

 

In Q1CY25, GCCs leased 88 per cent of the total office space in green buildings as part of their broader commitment to achieving carbon neutrality.

 

“On the supply side, developers have also upgraded infrastructure and amenities of their office projects to cater to the growing needs of GCCs, which has led to higher rentals,” said Shrinivas Rao, CEO, Vestian. 

 

According to Vestian’s sustainability report, green-certified office buildings commanded an average rental premium of 12–14 per cent over non-certified buildings. GCC-occupied office space in Bengaluru has been leased at a 50 per cent premium compared to non-GCC-occupied office space in FY25. The premium is 13 per cent in NCR and 9 per cent in Hyderabad.

 

According to Peush Jain, MD, commercial leasing & advisory, Anarock Group, office rentals across the top Indian cities have grown between 9 to 28 per cent from 2022 to 2025, mainly driven by GCCs.

 

Office rentals in India continued their upward trend even as global office markets remained under pressure in 2024, according to Vestian.

 

Pawan Choudhary, chief technology officer, Zinnia India – an insurtech GCC, said ESG-compliant, Grade-A office spaces are a strategic decision given the substantial returns they deliver. 

 

“GCCs are choosing the high-end real estate for talent attraction and retention, operational efficiency, employee productivity, and well-being, brand reputation, and sustainability commitment,” he said.

 

The trend has worked for the Indian Reits as well, which distributed ~1,553 crore to more than 2.64 lakh unit holders in the fourth quarter of the financial year 2025 (Q4 FY25), up 13 per cent year-on-year (Y-o-Y) on the back of high-quality assets and strong leasing activity, particularly from GCCs, according to Alok Aggarwal, MD & CEO of Brookfield India Reit, and chairman of Indian Reits Association.

 

Anshul Jain, chief executive, India, SEA & APAC tenant representation, Cushman & Wakefield, said real estate costs for the GCCs are not more than 6-7 per cent of their total cost of a GCC setup, which does not deter them from going for high-quality locations. 

 

Industry experts forecast GCCs’ share in the overall leasing in India to be 40-55 per cent in the next two years, up from about 37 per cent today, which may lead to higher rentals.

 

According to Nasscom-KPMG report, the GCC market size in India tripled from $19.6 billion in FY15 to $64.6 billion in FY24. It is further anticipated to touch $110 billion by 2030, despite ongoing trade tensions and geopolitical frictions.