Home / Business and Economy / India's Office Market Booms on Global Trade Deals
India's Office Market Booms on Global Trade Deals
20 Feb
Summary
- Global firms eye India for expansion due to new trade agreements.
- GCCs are expected to drive 40-50% of India's office demand.
- Annual Grade A office space uptake by GCCs could reach 35-40 msf.
India's economic growth and favorable trade agreements are poised to significantly boost demand for office and warehouse spaces. As trade deals with the US, EU, and UK reduce entry barriers and enhance export competitiveness, global firms are increasingly expanding their operations in India. This trend is particularly evident in sectors like Technology, BFSI, Engineering & Manufacturing, and Consulting.
Global Capability Centers (GCCs) are expected to lead this real estate boom, accounting for approximately 40-50% of India's total office space demand over the next few years. Projections suggest an annual uptake of 35-40 million sq. ft. of Grade A office space by GCCs. US firms have historically dominated this demand, but EU and UK-based companies are anticipated to increase their footprint, diversifying occupier profiles.
Since 2020, GCCs have already represented about 38% of the total office leasing activity in India, demonstrating a transition from cost-arbitrage centers to innovation hubs. The demand is becoming more broad-based, with BFSI and engineering & manufacturing sectors expected to contribute substantially to space uptake in 2026, reflecting India's growing appeal for high-value functions.
