BFSI firms drive India’s GCC office leasing as demand shifts beyond tech

BFSI firms account for bulk of India’s GCC office leasing in H1 2026 as tech demand cools

Foreign banking, financial services and insurance (BFSI) companies leased 7.32 million sq ft of office space for global capability centres (GCCs) across eight Indian cities in the first half of 2026, a 70% increase from 4.31 million sq ft in the same period a year earlier. BFSI occupiers accounted for 36% of the 20.6 million sq ft leased for GCCs in Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad and Kolkata, while demand from foreign IT-ITeS firms declined by 28% to 4.13 million sq ft from 5.71 million sq ft.

"India's commercial real estate market is witnessing a clear structural shift, with GCC-led demand becoming increasingly diversified beyond traditional technology occupiers," said Viral Desai, international partner and senior executive director, Occupier Strategy Solutions, Industrial & Logistics, Capital Markets & Retail at Knight Frank India. "The 70% year-on-year surge in BFSI-led GCC transactions underscores the sector's growing appetite for high-quality office spaces."

The shift marks a notable rebalancing of occupier profiles in India's GCC market. While BFSI emerged as the single largest sector by leased area in H1 2026, other service companies also showed expansionary behaviour: office leasing for non-BFSI service firms rose to 5.10 million sq ft from 4.41 million sq ft a year earlier. By contrast, global manufacturing companies trimmed their GCC-related office absorption to 4.05 million sq ft in January–June 2026 from 4.67 million sq ft in the same period of 2025.

The data point to a more diversified demand base for premium office space as companies outside traditional IT hubs deepen their India operations. Desai characterized the moderation in IT/ITeS absorption as "a period of recalibration as occupiers realign their global strategies," and suggested the evolving demand profile demonstrates "the increasing depth and resilience of India's commercial real estate market, with BFSI emerging as a key driver of office space demand in 2026."

Industry executives outside advisory firms see the same momentum translating into an expansion of the GCC ecosystem. Mukesh Choudhary, managing director at Accuspace, said: "India's GCC ecosystem is entering a decisive phase of expansion, with state-level policies, skilled workforce, incentives and infrastructure commitments creating a strong pipeline of new centres and employment." He added that the "scale of GCC additions and diversification is likely to translate into sustained demand for quality office space, not just in established hubs but also across emerging markets."

• Geography: Data covers eight cities — Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad and Kolkata.
• Aggregate leasing: 20.6 million sq ft leased for GCCs in H1 2026 across the eight markets.
• Sectors: BFSI 7.32M sq ft (36% share), IT-ITeS 4.13M sq ft (down 28%), other services 5.10M sq ft (up from 4.41M), manufacturing 4.05M sq ft (down from 4.67M).

Outlook: With BFSI and other service sectors accelerating their footprint in India, leasing activity for GCCs is expected to remain concentrated on high-quality office stock in both established and emerging office markets. Firms and landlords will likely recalibrate leasing strategies to cater to a more heterogeneous occupier mix, while project pipelines and state-level incentives will influence where new centres are established and how quickly demand translates into construction and fit-outs.