Bengaluru and Hyderabad dominate: GCCS control Indian real estate boom!
Bengaluru and Hyderabad dominate: GCCS control Indian real estate boom!
What is happening in the Indian technology market? The Global Capability Centers (GCCS) are characterized by impressive growth and are becoming increasingly important in the global economy. According to a current report by JLL, the GCCS focus is strongly on Bengaluru and Hyderabad, which together make up 64% of the office space rental. This is primarily due to the large pools of highly qualified engineering and digital talent, competitive property prices and a sophisticated office infrastructure. Bengaluru is home to over one million tech professionals and contributes significantly to the digital competence of India, which includes more than two million specialists, which makes it a perfect location for research and development.
Interestingly, the three large cities of Bengaluru, Hyderabad and Chennai not only lead the rental statistics, but also recorded a remarkable increase in demand in the first quarter of 2025. The rental figures rose by 72%in the year, which underlines the attractiveness of these cities for companies and investors (the flex insights). The most important drivers of this growth are sectors such as IT/Ites, BFSI (Banking, Financial Services, and Insurance) and the production industry. With a total of around 5.34 million square foot office space, which were leased in these three cities in the first quarter of 2025, it can be seen that the expansion of GCCs knows no limits.The role of animal-2 and animal-3 cities
A particularly exciting aspect is the flowering of the animal-2 and animal-3 cities in India. These cities, such as Ahmedabad, Kochi and Coimbatore, are increasingly developing new centers for talented workers who are willing to play a major role in the GCC ecosystem. According to JLL, over 190 GCCs have already gained a foothold in these aspiring locations. The advantage for companies that settle in these cities is not to be neglected: with 25-30% lower talent costs and about 50% lower office areas compared to animal-1 cities, the economic incentives are clear (JLL).
This development shows that global companies not only limit the talents and business opportunities in India to the large cities, but also recognize and use the underlying potential of remote locations. The growth of GCCs in different cities has a growing economy that, according to forecasts, could generate up to $ 76 billion by 2025 and employs over 1.7 million specialists. India is thus becoming a global leader in the GCC ecosystem, which also underlines the way into the future with promising perspectives (Source Bae.
The next steps and challenges
But where exactly does the trip go? Rents in Bengaluru alone were around 3.3 million square feet in the first quarter of 2025, which illustrates the impressive market share of 40%. Delhi-NCR followed with 1.91 million square foot, while Chennai recorded 1.22 million square foot. The large tech-oriented sectors, in particular IT/Ites, dominate with 35% of the rental activities ([the flex insights] (https://theflexinsights.com/gcc-leasing-surge-southern-cities- Q1-2025/)).
And although the sector is booming, there are also challenges to master. The shortage of talent affects areas such as AI and data science, and 80% of companies report difficulties to find suitable specialists. Support from government funding measures, such as tax relief in special economic zones (SEZS), contribute to counteracting this problem (Source Bae).
summarized can be said that the GCCs in India have had a long way and have long since developed from pure cost savings into specialized innovation centers. With a growing focus on talent, market diversification and infrastructure development, India is well positioned to further expand its role as a global actor in the field of digital transformation and technological development.
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| Ort | Bengaluru, Indien |
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