India’s Global Capability Centre (GCC) expansion is rapidly reshaping commercial real estate demand, with the sector leasing more than 32.5 million square feet in 2025 and contributing over 40 per cent of total office leasing across the country’s top seven cities.
Multiple industry reports now position India as the emerging GCC capital of the world, but the rapid expansion is also intensifying debates around metro concentration, infrastructure stress, housing affordability and whether Tier-2 cities are truly prepared to absorb the next phase of growth.
Will GCC Expansion Overload Urban Infrastructure?
India’s projected GCC expansion, expected to surpass 2,400 centres and generate nearly 2.8 million jobs by 2030, is simultaneously increasing pressure on urban infrastructure in key commercial hubs, particularly Bengaluru and Hyderabad, where congestion, rising rentals and long commute times continue intensifying.
Addressing concerns around infrastructure stress in major cities, Parveen Jain, President of Naredco, maintained that infrastructure-led growth across cities like MMR and Pune continues to remain strong despite recent moderation in housing sales. He said metro corridors, expressways and urban infrastructure upgrades are steadily improving connectivity and supporting long-term residential and commercial demand.
He further said real estate markets naturally move in cycles and buyers are becoming increasingly value-conscious in their decisions. According to Jain, infrastructure projects create demand gradually over time, while migration, employment growth and expanding business activity continue supporting long-term urban growth prospects.
Is India’s GCC Growth Still Trapped In Metros?
India’s GCC ecosystem continues to remain heavily concentrated across Bengaluru, Hyderabad, Pune and NCR despite aggressive discussions around decentralisation and Tier 2 expansion. Most innovation, leadership and strategic decision-making functions still operate from metro cities because of stronger infrastructure and established corporate ecosystems.
While talking about the continued dominance of metro cities in India’s GCC ecosystem, Mattew Parambil, Vice President and National Head-Sales at COWRKS, noted that “over 90 per cent of GCC activity is still in the top six metros because these markets offer mature Grade-A office ecosystems, strong airport connectivity, deep digital infrastructure and leadership-ready talent pools.”
He further said Tier 2 expansion currently remains selective, with smaller cities largely witnessing satellite office demand instead of large-scale innovation hubs. According to Parambil, the present GCC model continues to remain “hub-and-spoke,” where metros function as strategic centres while emerging cities support execution-focused operations.
Can Tier 2 Cities Handle India’s GCC Realty Boom?
Tier 2 cities are increasingly emerging in India’s GCC narrative as companies search for lower rentals, reduced attrition and scalable growth alternatives beyond congested metros. Cities such as Indore, Jaipur, Kochi, Ahmedabad and Coimbatore are witnessing growing interest from developers and commercial real estate stakeholders.
Highlighting the growing GCC push toward smaller cities, Manoj Dhanotiya, Founder and CEO of Micro Mitti, said “the stress, costs and congestion of Tier 1 cities will accelerate this transition faster than most expect.” He added that cities like Indore, Ahmedabad, Coimbatore, Jaipur and Bhubaneswar are rapidly improving airports, digital infrastructure and office ecosystems.
He further argued that future GCC growth cannot remain concentrated within a handful of metros because companies are increasingly prioritising affordability, lower commute stress and better quality of life. According to Dhanotiya, talent and leadership ecosystems will gradually decentralise toward emerging cities as expansion pressures continue mounting across Tier 1 markets.
Is Premium Housing Winning Over Affordable Homes?
The GCC-led commercial real estate boom is increasingly influencing residential housing markets as premium demand rises near major office corridors. However, affordability pressures are simultaneously intensifying across urban centres amid rising property prices, slowing affordable housing momentum and growing concerns around uneven urban development.
Emphasising the strong demand for premium housing, Jain said “premium housing is becoming more popular due to rising incomes of most individuals and desire for better living spaces. However, the mid-income group still forms the backbone of the entire market.” He added that rising property prices are largely being driven by increasing land, construction and regulatory costs rather than deliberate supply restrictions by developers.
Dhanotiya, on the other hand, observed that the GCC boom could either create smarter cities or deepen urban inequality depending on how future urban planning evolves. He argued that Tier-2 cities have the opportunity to build balanced ecosystems with mixed-income housing, inclusive infrastructure and shorter commute-driven development models.
Can Hybrid Work Disrupt India’s Office Leasing Story?
The rise of hybrid work models is reshaping discussions around long-term office demand as companies continue taking up large commercial spaces across India’s expanding GCC ecosystem, particularly amid increasing conversations around sustainability, workplace flexibility and future commercial leasing assumptions.
According to Parambil, “Hybrid work is now an established operating model, but it has not reduced the importance of physical workplaces for GCCs.”
He added that GCCs continue relying on offices for collaboration, leadership integration and talent development, while enterprises are increasingly prioritising flexible and experience-led workspaces instead of conventional office formats as workplace strategies continue evolving. |
