Mumbai, Sep 17 : Global Capability Centres (GCCs) acted as the major driver of India's commercial real estate sector, with leasing projected to grow by 15'20 per cent over the next two years, said a report on Wednesday.

GCCs are projected to lease 60'65 million square feet of Grade A office space by 2027, according to a report by real estate services firm Colliers.

These centres have leased around 100 million square feet in India's top seven cities since 2021, accounting for 36 per cent of total office demand. Leasing activity by global corporates is expected to touch 28 million square feet by 2025, nearly doubling the 2021 figure, the report said.

Further, the share of GCCs in overall office leasing, which had dipped to less than 30 per cent in 2022, has rebounded sharply to nearly 40 per cent in 2025, it added.

'Capability centres in India are steadily evolving into innovation-driven, domain-specialised, and technologically integrated centres, and are likely to drive over 40 per cent of India's office space demand,' said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

Technology firms accounted for 37 per cent of GCC demand leading the chart, while the banking, financial services, and engineering sectors are expanding rapidly, projected to contribute 40'50 per cent of future leasing.

Within GCCs, the share of engineering and manufacturing occupiers has risen from 11 per cent to 17 per cent, driven by growing R&D and product engineering needs.

Bengaluru and Hyderabad accounted for 60 per cent of GCC activity since 2021. Chennai has experienced a 5.3-fold surge in GCC leasing this year from 2021 level.

'Flex spaces too, are likely to gain traction as GCCs seek greater scalability and agility in their workplace portfolios. At the same time, Tier II cities are likely to see a steady uptick in GCC activity, supported by cost arbitrage, infrastructure development, and talent availability,' said Vimal Nadar, National Director and Head of Research, Colliers India.

The US-based companies have traditionally accounted for nearly 70 per cent of total GCC absorption since 2021. In recent years, GCCs from the UK, EMEA, and APAC regions have also expanded their footprint, steadily strengthening their presence in India.

/IANS