Trade pacts to speed up GCC expansion, lift office realty outlook

Bengaluru: Ongoing efforts to rationalise tariffs, promote sector-specific trade facilitation and ease services barriers are expected to accelerate the entry and expansion of global capability centres (GCCs), sharpening India's office demand outlook, say real estate experts.

At the same time, export-led manufacturing and supply-chain localisation are set to lift activity across warehousing and industrial real estate. India's office market has already scaled up on the back of GCCs, which are evolving from cost-arbitrage centres into innovation-led hubs spanning R&D, engineering, advanced analytics, AI/ML and cloud computing.

Data from real estate consultancy Colliers show that of the 310 million sq ft of cumulative office space demand since 2020, GCCs accounted for about 117 million sq ft, or 38%. GCC absorption has nearly doubled, from around 16 million sq ft in 2020 to close to 30 million sq ft in 2025. "GCCs will continue to anchor India's office space demand, supporting the ongoing scale-up and diversification of the occupier base," said Vimal Nadar, national director & head of research at Colliers India.


India is currently engaged in tariff rationalisation and sector-specific trade facilitation under bilateral engagements with the US, EU and the UK. These are expected to help widen the addressable market for global firms operating from India.

"With global trade frictions moderating and bilateral agreements gaining traction, demand is likely to broaden beyond technology, with BFSI and engineering and manufacturing contributing 40-50% of office uptake in 2026," Nadar said.

The macro backdrop remains supportive. The IMF has raised India's GDP growth forecast by 20 basis points to 6.3% in 2026. For 2027, its projection is 6.5%. The optimism reflects resilient domestic demand and progress on FTAs.

"India's GCC ecosystem has already crossed 100 million sq ft of office occupancy, which is today pegged at 10% of total absorbed stock, while data centre capacity is set to double to nearly 2 GW within three years-creating a synchronised demand cycle across office, industrial and digital infrastructure that runs in sync with the allied office growth story," said Juggy Marwaha, chief executive of the Prestige Group (Office).