India's commercial office space market is experiencing a major change as flexible office space players become the go-to option for new Global Capability Centres (GCCs) establishing themselves in the country. In the face of international uncertainty and the requirement for flexibility, GCCs-particularly in fintech, emerging technology, and deeptech-are gravitating towards managed, plug-and-play office spaces that provide short lease terms and the ability to scale up or down with changing business needs.
Large players such as Awfis, CorporateEdge, and Smartworks are seeing a sizeable increase in demand from GCCs, which has led them to introduce specific verticals for catering to these multinational clients. In CorporateEdge, GCCs currently contribute 35% to the portfolio and expect to reach 50% in the near future. GCCs contribute a quarter of the customers and 15% of new leasing volume for Awfis, as per its reports.
This is part of an overall boom in India's flex office market. In Q1 2025 alone, flex space leasing grew 22% year-on-year, led by Delhi-NCR, Pune, and Bengaluru. Flex spaces are likely to contribute 12-15% of occupiers' portfolios in the next few years, and GCCs are likely to contribute 40% of the demand for Grade A office space.
Industry insiders credit this change with the demand for speed and operational flexibility, since adaptable workspaces enable new GCCs to be set up much quicker than conventional office environments. With India's human capital and cost benefits, the country continues to be a draw for multinational companies setting up offshore R&D and back offices.
Key Highlights
Demand boom: Large flex players experience a noteworthy increase in GCC clients, with specialized service verticals being initiated.
Portfolio shift: CorporateEdge aims to have 50% of its portfolio consist of GCCs in the near future; Awfis has 25% GCC client base.
Market growth: Flexible office leasing increased by 22% year over year in Q1 2025, with 2.2 million sq. ft. leased in leading cities.
GCC dominance: GCCs are estimated to contribute 40% of Grade A office space demand in the next few years.
Agility and speed: Flexible office spaces facilitate quicker go-live for new GCCs, allowing for quick scaling.
IPO pipeline: The boom in flex space is inducing some players to line up for IPOs, a sign of the segment's maturity.
Top cities: 75% of GCC-driven leasing activity comes from Bengaluru, Hyderabad, and Chennai.
Source: The Economic Times, Rediff Business, Realty Plus, Hindustan Times
