GCCs Drive India’s Office Leasing, But Delhi NCR, Chennai, Kolkata See Declines

Global capability centres (GCCs) are driving India’s office leasing market, accounting for more than two-fifths of the total space leased in the first nine months of 2026. However, the growth has not been uniform across the country. While GCC demand has strengthened, office leasing has declined in Delhi NCR, Chennai and Kolkata, highlighting the diverging trends across the country’s major office markets.

According to a report by real estate consultancy JLL, GCCs leased 26.2 million sq. ft between January and September 2026, a 30.6% increase from the corresponding period last year, accounting for 42.9% of India's total gross office leasing during the period.

The growth has been significant enough for GCCs to have already leased 84% of the total office space they took up in the whole of 2025, which was itself a record year. Overall, India's gross office leasing rose 8.1% year-on-year to 61.06 million sq. ft in the first nine months of 2026, with the third quarter alone recording 23.17 million sq. ft — the strongest quarterly performance after a mid-year slowdown.

The increase in GCC activity has also pushed up the share of foreign occupiers in India's office market. Foreign-headquartered organisations accounted for 57.8% of leasing in the first nine months, while foreign occupiers made up 62% of Q3 leasing, their highest share in seven quarters. However, the growth has not been uniform across occupier categories or cities, with foreign non-GCC leasing declining even as GCC demand strengthened.

"Q3 showed what happens when confidence returns to India's office market. Deals that were on hold in Q2 got signed, and occupiers backed their growth plans with firm commitments... In just nine months of 2026, GCCs have leased 26.2 million sq. ft, which is already 84% of what they took in all of 2025, a record year," said Radha Dhir, JLL India CEO.

"With active negotiations continuing and more GCCs preparing to set up here, 2026 is set to comfortably go past last year's record," she added.

GCCs Biggest Driver Of Office Demand

GCCs leased 26.2 million sq. ft in the first nine months of 2026, compared with 20 million sq. ft in the corresponding period last year. Their 30.6% growth outpaced the 8.1% increase in overall office leasing, underlining their growing contribution to commercial real estate demand.

According to the JLL report, technology and BFSI companies drove GCC expansion, with manufacturing firms following closely. The consultancy's outlook also points to continued expansion by existing GCCs as well as new entrants across sectors such as banking, manufacturing, technology research and development, retail, logistics, infrastructure and aerospace.

The growth shows a shift from traditional outsourcing towards product development, analytics and operations automation, supported by India's talent in AI, data science and digital engineering, said Aman Gupta, Director at RPS Group.

“The existing GCCs are expanding their scope from support activities to research, engineering and AI-based work, thus needing more capacity and improved quality of space. In parallel, new country entrants from several industries keep opening their offices on account of India’s workforce and GCCs’ ecosystem maturity,” he said.

“Negotiations going on and GCCs planning to launch operations prove that the pipeline will not be driven exclusively by the expansion of already-existing GCCs,” he added.

Amrita Gupta, Director at Manglam Group, said multinational companies increasingly viewed Indian centres as strategic extensions of their businesses, with responsibilities spanning innovation, product development and decision-making.

“India's ability to combine skilled talent, a mature business ecosystem and operational scale gives it a distinct advantage. The pace may vary with global business conditions, but the underlying proposition remains compelling,” she said.

Non-GCC Leasing Declines; Bengaluru, Hyderabad Gain Ground

Foreign-headquartered organisations accounted for 57.8% of leasing in the first nine months, while foreign occupiers made up 62.0% of Q3 leasing, a seven-quarter high, the JLL report said. However, foreign non-GCC leasing fell 29.0% to 9.1 million sq. ft from 12.8 million sq. ft a year earlier. GCC leasing, by comparison, rose from 20.0 million sq. ft to 26.2 million sq. ft. Domestic occupiers leased 25.8 million sq. ft, up 9.2%.

Gupta of RPS Group said foreign demand was increasingly concentrated in GCCs rather than spread across international occupiers. This makes the market more exposed to any slowdown in GCC expansion, he said.

“It seems that international companies are choosing India as their destination to develop capabilities in engineering, analytics, and operations. For the landlords, the message is clear – demand is increasingly concentrated in a segment committed to India,” Gupta said.

According to the report, Bengaluru remained the largest market, with 17.11 million sq. ft of leasing, up 15.4%, and a 28% share. Hyderabad grew 32% to 9.93 million sq. ft and Pune 31.6% to 8.25 million sq. ft. Mumbai rose 17.7% to 8.75 million sq. ft. Leasing declined 17% in Delhi NCR to 10.78 million sq. ft, 13.1% in Chennai to 5.39 million sq. ft and 31.5% in Kolkata to 0.86 million sq. ft, according to JLL.

In Q3, Bengaluru accounted for 33.4% of leasing, followed by Hyderabad at 19.6%, Delhi NCR at 18.1% and Mumbai at 12.4%.

Ramgopal Nanda, chief business officer at Spectrum Talent Management, said Bengaluru, Hyderabad and Pune had deep pools of engineering, AI and data talent, Grade A office campuses and state governments actively seeking GCC investments. Hyderabad and Pune also offered cost advantages over Bengaluru, he said.

On the decline witnessed in cities like Delhi NCR, Kolkata and Chennai, Nanda said that leasing was “lumpy”, with a few large deals capable of shifting city-level comparisons. “I wouldn't read the declines as weak demand. Office leasing is lumpy. Two or three large deals moving from one quarter to the next can swing a city's numbers.”

“In Delhi NCR, leasing fell, but vacancy is at a 15 year low. Companies want to be there and can't find enough good space. Chennai's vacancy also dropped year on year after a strong 2025. Kolkata has very few GCCs, so even a small number of deals moves its figures a lot,” he said.

Are Leased Offices Translating Into Occupied Space?

Net absorption, which measures the actual increase in occupied office space by accounting for new space taken up by businesses and space vacated by existing tenants, rose 5.3% year-on-year to 41.96 million sq. ft in the first nine months of 2026, according to JLL.

This indicates that the growth in leasing activity was also translating into higher office occupancy, although the pace of increase in net absorption was slower than the 8.1% rise in gross leasing. Bengaluru led the market with net absorption of 13.12 million sq. ft, up 24.4% from a year earlier, followed by Hyderabad at 8.97 million sq. ft, up 64.7%, and Pune at 5.83 million sq. ft, up 29.1%.

In contrast, Delhi NCR's net absorption fell 38.6% to 6.07 million sq. ft, Chennai's declined 25.6% to 2.94 million sq. ft, Mumbai's dropped 9.1% to 4.31 million sq. ft and Kolkata's fell 6% to 0.72 million sq. ft. Q3 absorption stood at 15.08 million sq. ft, up 14.1% quarter-on-quarter.

New office completions, per the JLL report, reached 43.7 million sq. ft in the first nine months, the highest comparable post-Covid period. Vacancy rose 30 basis points quarter-on-quarter to 14.8%, but remained 90 basis points lower year-on-year. Prime office districts retained single-digit vacancy, while Mumbai and Delhi NCR recorded their lowest vacancy levels in 16 and 15 years, respectively.

The sequential increase in vacancy reflected new supply coming on stream faster than it could be occupied, Nanda said. Pre-committed space is not counted as absorbed until it is physically occupied. “Net absorption hit a record 42.0 million sq ft, up 5.3%, but new buildings came in slightly faster than they could fill. Also, a good share of gross leasing is pre-commitments in buildings still under construction, and those don't reduce vacancy yet.”

“The better indicator is the top end of the market. Prime business districts still have single-digit vacancy, and Mumbai and Delhi NCR are at their lowest vacancy in 16 and 15 years. The best buildings are full,” he said.

Amrita Gupta said the availability of quality developments, connectivity and infrastructure would influence occupier decisions. The market will need a consistent pipeline of institutional-backed, quality office developments that can respond to evolving occupier requirements, she said.

“Developers must demonstrate greater foresight in planning their portfolios, particularly in markets where vacancies in established business districts are tightening. The milestone will be meaningful only if the growth in gross leasing is accompanied by actual occupancy and healthy net absorption,” she added.

Can GCC Sustain The Next Phase Of Growth?

JLL expects office leasing in 2026 to match the 2025 record and sees annual volumes potentially reaching 100 million sq. ft in two to three years. Experts said achieving that level would require demand to broaden beyond GCCs, with greater contributions from domestic companies, BFSI and manufacturing, alongside a consistent pipeline of quality office developments.

Sustained GCC investments, quality office supply and infrastructure development will be critical to achieving the 100 million sq. ft leasing milestone. However, developers must remain responsive to evolving occupier expectations, particularly flexibility, sustainability and workplace quality, said Payas Agarwal, director at Great Value Realty.

Remarking that GCCs have not yet scratched the true potential for growth in India, Archana Tewary, Partner at JSA Advocates & Solicitors, said office demand will be driven by multiple factors on a national level, while currently GCCs boost growth in specific regions.

“States need to provide easy access to electricity, talent, water and other resources while ensuring that GCCs also grow sustainably,” she said, adding that states have offered several policies in this regard, including incentives for land acquisition, supply of energy and other resources, “but the true differentiator in the long run may well be the development of skill and talent.”

GCCs can truly be drivers of economic growth if these aspects are taken care of in a seamless way, Tewary said.

In terms of sustainability, RPS’s Gupta believes that the demand is structural rather than cyclical because “GCCs are entering areas like AI, engineering, and product development, which are long-term investments in the Indian manpower pool.”

For developers, the priority must be to exercise discipline in supply planning and remain attentive to changing occupier needs, said Manglam’s Gupta. “A market's strength is not measured simply by the volume of space leased or delivered, but by its ability to sustain demand without creating an imbalance. That is what will ultimately determine the durability of this growth,” she remarked.

Ultimately, whether India’s office market can sustain its growth and reach the 100 million sq. ft annual leasing mark will depend on how far demand expands beyond GCCs and how effectively developers and states respond to occupier needs. While the continued expansion of GCCs offers a strong base for growth, a broader mix of occupiers, skilled talent, infrastructure and disciplined supply will be essential to sustaining the momentum without creating an imbalance in the market.