Bengaluru leads South India’s 64% share of GCCs in India

Bengaluru leads India’s GCC boom with 40% share, driving innovation and real estate growth as South Indian cities capture 64% of activity

Global Capability Centers (GCCs) have evolved far beyond their origins as back‑office support units. Today, they serve as innovation hubs, research and development engines, and strategic decision‑making centers for multinational corporations. South Indian cities dominate this landscape, accounting for nearly 64% of India’s GCC office leasing, with Bengaluru firmly established as the country’s undisputed GCC capital.

Bengaluru: The Innovation Powerhouse
Bengaluru alone contributes close to 40% of India’s total GCC office leasing, making it the single largest hub nationwide. The city has become a magnet for advanced GCCs specializing in artificial intelligence, product engineering, cloud computing, and deep technology R&D. Employment corridors such as Whitefield, Outer Ring Road, and Sarjapur Road have transformed into dense clusters of global operations, with nearly 3.3 million sq. ft. leased in recent quarters.

This concentration of activity has had a profound impact on the city’s real estate market. Strong rental demand, premium valuations near metro‑connected tech hubs, and sustained price appreciation are reshaping Bengaluru’s property landscape. Analysts project residential prices to rise by 8–11% over the next five years, supported by a compound annual growth rate of around 40% in GCC‑driven leasing. Rental growth is expected to remain steady at 6–8% annually, reinforcing Bengaluru’s position as the most dynamic GCC market in India.

Hyderabad and Chennai: Supporting Anchors
While Bengaluru dominates, Hyderabad has emerged as the fastest‑scaling challenger, attracting nearly 9% of GCC leasing. Its financial district, HITEC City, and Gachibowli are preferred destinations for BFSI, pharma, and cloud‑based GCCs. Chennai, contributing about 15%, has carved a niche in engineering, automotive, and manufacturing R&D, with the OMR corridor continuing to attract long‑term occupiers.

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Other Cities and Sectoral Spread
Beyond South India, cities like Pune, Delhi NCR, and Mumbai together account for the remaining 36% of GCC leasing. Their activity is more fragmented, often focused on niche functions rather than large integrated hubs. Sector‑wise, IT/ITeS dominates leasing with 35%, followed by BFSI at 22%, manufacturing at 13%, and smaller shares from e‑commerce, consulting, and others.

The Road Ahead
South India’s dominance is expected to continue, with projections suggesting it will retain over 60% of GCC share by 2030. Tier‑2 cities such as Coimbatore, Kochi, and Trivandrum are poised to absorb overflow demand. For Bengaluru, the trajectory remains clear: it will continue to anchor India’s GCC ecosystem, driving innovation, premium office demand, and urban growth, while reinforcing its role as the strategic heart of global enterprise operations in India.

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