How GCCs are boosting demand for premium office spaces

India’s office market is seeing a shift amid big expansions by Global Capability Centers (GCCs) and increase demand for premium office spaces. Flexible workspace operators and Managed Office Space (MOS) providers are gaining from this trend, as companies move towards capital-light models and scalable office solutions. GCCs are now playing a big role in India’s commercial real estate growth. These centres, once focused on support functions, are now involved in product development and innovation across sectors such as artificial intelligence, fintech, and healthcare.

India has around 1,850 GCCs employing nearly 2.2 million people. These centres are adding 80,000 to 120,000 seats every year. This is creating an annual market opportunity of up to $254 million. By 2030, GCCs are expected to generate demand for 160–200 million square feet of office space. Flexible and managed workspaces are likely to capture a large share of this demand.

Shift towards premium and flexible workspaces
As GCCs expand, companies are looking for Grade-A office spaces with sustainability features and advanced technology. This has increased demand for premium office environments that support global operations.


Flexible workspace operators are working with developers through capital-light models. In this setup, landlords invest in infrastructure while operators provide workspace solutions and manage operations. This allows companies to reduce upfront costs and scale based on business needs.

Harsh Lambah, IWG Country Head, India, said: “Companies of all sizes, from large enterprises and Global Capability Centers (GCCs) to agile startups and growing local businesses are now rethinking their real estate strategies to reflect a rapidly accelerating move towards capital-light operating models that focus on shifting Capex into OpEx, freeing up capital for their core operations and expansion plans. In a world where the growing influence of AI means that CEOs and CFOs are unable to accurately forecast the size of their headcount in 12- or 24 months, the ability to stay flexible is imperative.”

Expansion moves beyond major cities
The demand for premium office spaces is no longer limited to metro cities. Flexible workspace providers are expanding into Tier-2 and Tier-3 cities as companies look for offices closer to employees.

Harsh also said that, “a clear 'flight to quality' is being witnessed wherein businesses are gravitating towards premium, fully serviced environments that enhance employee experience, and support hybrid working patterns.”

Cities such as Pune have emerged as key GCC hubs, supported by growth in IT exports and office demand. Workspace providers are offering different formats to cater to large enterprises, startups, and multinational firms.

The rise of hybrid work is also supporting demand for flexible office spaces. Companies are using these models to improve productivity and manage costs.

The expansion of flexible workspaces into smaller cities is contributing to local economic activity. Companies are adopting models that allow employees to work closer to home.

This shift is supporting a reverse migration trend, with professionals moving away from large cities to smaller urban centres. As GCCs continue to expand and companies adopt hybrid work, demand for premium office spaces is expected to remain strong across India.