GCC Guide 2025: Setting Up Office Space in India

India is known as a powerhouse for Global Capability Centers (GCCs), hosting over 1,950 centers that employ 1.9 million professionals in 2025. These hubs, utilized by global firms for IT, research, finance, and analytics, are fueling a massive demand for office real estate. Forecasts predict more than 2,600 GCCs by 2029, requiring 300-320 million square feet of space. For businesses planning to set up a GCC office in India this year, strategic decisions around location, infrastructure, and costs are paramount. This guide offers a comprehensive, data-rich blueprint for navigating this dynamic landscape.

India’s appeal for GCCs lies in its unbeatable combination of talent and affordability. The nation graduates 1.5 million STEM students annually, providing a workforce that’s 70% cheaper than in Western markets—tech salaries average ₹15-20 lakh yearly compared to $80,000-$100,000 abroad. In 2024, GCCs snapped up 28 million square feet of office space, a 15.2% jump from the previous year, comprising 40% of India’s office leasing since 2016. Today, 65% of these centers prioritize cutting-edge fields like AI, cloud technology, and machine learning, evolving beyond cost-saving roles. By 2030, this sector could inject $110 billion into India’s economy and employ 4.5 million people.

Location dictates 80% of real estate value, making city selection critical. Here’s a snapshot of India’s leading GCC destinations in 2025:

• Bengaluru: The epicenter of GCC activity, it accounted for 47% of leasing in 2024 with 13.1 million square feet. Home to 600+ centers, Bengaluru boasts 1.2 million tech workers. Rents range from ₹80-120 per square foot monthly, with a tight 6% vacancy rate—40% below India’s norm. In 2024, 12 million square feet of new office stock emerged, fueled by tech and R&D demand.

• Hyderabad: A rising star, Hyderabad absorbed 5.5 million square feet in 2024, up 20% from 2023. With 350+ GCCs, it excels in IT and pharmaceuticals, offering rents of ₹60-90 per square foot—25% less than Bengaluru. Featuring 99.9% power reliability and 1 Gbps internet in 80% of offices, it attracts 60% of new GCCs yearly, supported by a 500,000-strong talent pool with 15% lower attrition.

• Delhi-NCR: Leasing 4.8 million square feet in 2024, this region hosts 300+ GCCs, strong in BFSI and consulting. Rents span ₹70-110 per square foot, with SEZs (1.5 million square feet leased) cutting costs by 30% via tax breaks. Three airports within 50 kilometers enhance connectivity, though a 10% vacancy rate suggests caution.

• Chennai: With 3.2 million square feet leased in 2024 (up 25%), Chennai’s 200+ GCCs focus on IT and manufacturing. Rents of ₹55-85 per square foot and a 62% STEM retention rate keep it competitive. A ₹500 crore metro expansion will drive 18% value growth by 2027.

• Pune: Absorbing 3.5 million square feet in 2024, Pune’s 250+ GCCs tap 400,000 professionals. Rents range from ₹65-95 per square foot, with a 7% vacancy rate. Its 50+ colleges add 20% new talent yearly.

• Tier-2 Cities: Coimbatore, Jaipur, and Kochi collectively leased 2 million square feet in 2024. Rents of ₹40-60 per square foot—35% below metros—and 5% vacancy rates, plus incentives like 50% rental subsidies in Jaipur, draw 45% of new GCCs.

GCCs favor Grade A spaces, leasing 77.2 million square feet across seven major cities in 2024, up 22.6% from 2023. Key needs include:

• Scale and Design: Small setups (under 50,000 square feet) led with 5,500 leases since 2018, followed by 800 medium (50,000-100,000 square feet) and 530 large (100,000+ square feet) deals. In 2024, 60% of spaces adopted flexible designs for hybrid work, aligning with 70% of GCCs.

• Facilities: 85% require 1 Gbps internet, 90% demand round-the-clock security, and 75% need parking for 200+ vehicles. Power reliability (99.9% uptime) covers 80% of spaces, and 36-foot heights suit 70% of tech setups.

• Expenses: Rents vary—₹80-120 in Bengaluru, ₹60-90 in Hyderabad, ₹55-85 in Chennai. Deposits start at ₹5-10 lakh, fit-outs cost ₹1,500-2,500 per square foot, and maintenance adds ₹6-12 monthly. SEZs save 30% on taxes, trimming ₹50-70 lakh yearly for a 50,000-square-foot office.

• Set Goals: Focus on innovation (65% of GCCs) or savings (25%). A 50,000-square-foot space fits 500 staff for tech or R&D.

• Pick a City: Prioritize talent (70% key), infrastructure (80% with 1 Gbps), and costs (Tier-2 saves 35%). Bengaluru scales, Hyderabad economizes.

• Legal Framework: Opt for a private limited company (70% of GCCs) or subsidiary. FDI permits 100% ownership; 3-5 NOCs take 50-65 days, costing ₹2-5 lakh.

• Secure Space: Target Grade A leases—77% pre-committed in 2024. Aim for ₹60-120 per square foot with flexible terms (60% available).

• Build Infrastructure: Budget ₹75-125 lakh for a 50,000-square-foot fit-out with AI tech (65% of GCCs) and hybrid setups (70%). Takes 90-120 days.

• Hire Talent: Access 1.9 million GCC workers—50% tech, 20% BFSI. Salaries of ₹15-20 lakh see 15% hiring growth in 2024.

• Luxury Shift: 60% of GCCs seek premium spaces with wellness features, pushing rents up 20%.

• Tier-2 Growth: 45% of new centers eye cities like Kochi, aided by 50% subsidies and 5% vacancies.

• AI Focus: 65% integrate AI, adding 25% to tech costs (₹20-30 lakh yearly).

• Green Goals: 40% target net-zero, raising fit-out costs 10% (₹150-200 per square foot) but saving 15% on energy.

Setting up a GCC office in India in 2025 offers unmatched opportunities, with 28 million square feet leased in 2024 and projections of 26 million more by 2027. Bengaluru’s dominance (47% of demand), Hyderabad’s cost edge (25% below metros), and Tier-2 cities’ rise (45% of new setups) provide diverse options. With rents at ₹40-120 per square foot, a 50,000-square-foot office costs ₹36-72 lakh annually, offset by 30% SEZ savings and a talent pool growing 15% yearly. Strategic planning—balancing location, infrastructure, and compliance—ensures GCCs thrive in India’s $110 billion ecosystem by 2030.