Foreign BFSI Firms Setting Up More Gccs; Rent Highest 7.32 Mn Sq Ft Office Space In H1: Knight Frank

Demand for office space to set up global capability centres (GCCs) in India is driven by foreign banking, financial services and insurance firms, as their gross leasing touched a record 7.32 million sq ft in the January-June period, according to Knight Frank.

Interestingly, leasing by foreign IT-ITeS companies to set up GCCs fell 28 per cent to 4.13 million sq ft in the first six months of this year from 5.71 million sq ft in the year-ago period.

Real estate consultant Knight Frank India noted that foreign banking, financial services and insurance (BFSI) firms leased 7.32 million sq ft of office space during the first half of this year to set up GCCs across eight major Indian cities, a 70 per cent rise from 4.31 million sq ft a year ago.

The eight cities are -- Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad and Kolkata.

During January-June 2026, the BFSI sector contributed 36 per cent of the overall leasing of 20.6 million sq ft for GCCs across the leading eight cities.

"India's commercial real estate market is witnessing a clear structural shift, with GCC-led demand becoming increasingly diversified beyond traditional technology occupiers," said Viral Desai, International Partner, Senior Executive Director, Occupier Strategy Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India.

The 70 per cent year-on-year surge in BFSI-led GCC transactions underscores the sector's growing appetite for high-quality office spaces, he added.

The leasing of office spaces by other service companies also rose to 5.10 million sq ft from 4.41 million sq ft during the period under review.

Desai noted that the strong growth in other service sectors points to a broader expansion of India's services economy.

"The moderation in IT/ITeS absorption reflects a period of recalibration as occupiers realign their global strategies. This evolving demand profile highlights the increasing depth and resilience of India's commercial real estate market, with BFSI emerging as a key driver of office space demand in 2026," Desai said.

Leasing of office spaces by global manufacturing companies to set up GCCs also fell to 4.05 million sq ft from 4.67 million sq ft, data showed.

Accuspace Managing Director Mukesh Choudhary said, "India's GCC ecosystem is entering a decisive phase of expansion, with state-level policies, skilled workforce, incentives and infrastructure commitments creating a strong pipeline of new centres and employment".

The scale of GCC additions and diversification is likely to translate into sustained demand for quality office space, not just in established hubs but also across emerging markets, Choudhary added.