Global Capability Centres (GCCs) accounted for 41.7% of India’s total office leasing volume in H1 2026, up 14.2% year-on-year, per JLL and CBRE data. Bengaluru and Hyderabad absorb the majority of it, for different reasons rooted in each city’s talent economics, rent, and supply. This piece lays out the full data picture city by city.
What changed: GCC leasing is accelerating, not plateauing
GCC office demand grew 14.2% YoY in H1 2026, reaching 41.7% of total leasing. In Bengaluru, GCCs accounted for 70% of gross leasing in Q1 2026 — the strongest quarterly share in two years. Bengaluru held a 24.7% share of India’s overall H1 leasing, the largest of any city. Hyderabad saw GCCs contribute 42.9% of quarterly leasing and held 18.8% of India’s H1 net absorption.
The scale of the underlying GCC ecosystem
Per the Nasscom-Zinnov India GCC Landscape Report 2026, India hosts 2,117 GCCs across 3,728 units, employing 2.36 million professionals and generating $98.4 billion in FY2026 revenue — a 32% expansion since FY2021. IT/ITeS remains the largest sector, followed by BFSI, engineering/product development, and a fast-growing AI/ analytics/ R&D share.
City-by-city: rent, vacancy, and what they tell you
| City | Grade A Rent (₹/sq ft/month) | YoY Rent Growth | Vacancy |
|---|---|---|---|
| Mumbai | ₹125 | 6% | ~9% overall; prime BDs below 3% |
| Delhi-NCR | ₹105 | 15% | — |
| Bengaluru | ₹100.6 | 7% | Sub-8% (Q1 2026: 11.4%); best micro-markets ~2% |
| Pune | ₹80.9 | 5% | — |
| Hyderabad | ₹77.5 | 8% | 24.2% — highest among major markets |
| Chennai | ₹74.5 | — | — |
| Kolkata | ₹48.3 | 15% | — |
Overall vacancy across major cities stood at 13.9% in Q1 2026. Premium micro-markets — Mumbai’s BKC, Bengaluru’s ORR — can run 30-50% above city averages, which matters for GCCs since their demand concentrates in exactly these corridors.
Reading the Hyderabad vacancy number correctly
Hyderabad’s 24.2% vacancy — the highest among major markets — read alongside its 42.9% GCC leasing share and fastest-growing ecosystem status, indicates a market that has built more Grade A supply than current demand has absorbed, keeping rent (₹77.5/sq ft) competitive even as GCC demand accelerates. That combination — high vacancy, low relative rent, accelerating demand — typically signals genuine negotiating room likely to tighten over coming years.
Bengaluru’s tight micro-market vacancy tells the opposite story
Bengaluru’s overall vacancy sits below 8% (11.4% in Q1 2026), with premium micro-markets as low as 2%. That tighter market explains Bengaluru’s second-highest rent among the seven cities despite Hyderabad’s faster ecosystem growth: Bengaluru’s supply, concentrated in ORR/Whitefield/Sarjapur, hasn’t kept pace with demand.
Why Bengaluru’s dominance is a story about depth
Bengaluru holds 29% of India’s national GCC ecosystem share, concentrated in ORR, Whitefield, and Sarjapur. Companies choosing Bengaluru are explicitly choosing scale and a proven talent bench over cost.
Why Hyderabad’s growth is a story about cost and expansion runway
Hyderabad expanded its ecosystem share from 12% to 14% between FY2024-FY2026 — faster than Bengaluru’s larger base — driven by lower land/rental costs (evident in the ₹77.5 vs ₹100.6 comparison), strong state support, and rising engineering/ semiconductor/ AI traction.
What financial impact this has on occupiers, GCC and non-GCC alike
Concentrated GCC demand pushes rents up fastest where it’s heaviest — evident in Bengaluru’s sub-2% vacancy in top corridors versus 11.4% city-wide. Non-GCC occupiers competing in the same micro-markets should expect tighter availability and firmer negotiation.
What operational impact this has on site selection for a new GCC
The Bengaluru-vs-Hyderabad choice maps to: depth and ~30% higher rent (Bengaluru) versus cost efficiency, more negotiating room, and expansion headroom (Hyderabad). The right choice depends on the specific function being located.
What to do next
Benchmark both cities using current micro-market-level rent and vacancy data, not city-wide averages — a Bengaluru ORR quote can differ substantially from the city average given the 30-50% corridor premium. Treat data older than two-three quarters as a starting point only, given how fast both ecosystems are moving.
FAQ
What share of India’s office leasing do GCCs represent?
41.7% in H1 2026, up 14.2% YoY.
How large is India’s GCC ecosystem?
2,117 GCCs, 3,728 units, 2.36 million professionals, $98.4 billion FY2026 revenue — up 32% since FY2021.
How do Bengaluru and Hyderabad rents compare?
₹100.6/sq ft (Bengaluru, +7% YoY) vs ₹77.5/sq ft (Hyderabad, +8% YoY) — roughly a 30% premium for Bengaluru.
Why does Hyderabad have higher vacancy?
24.2% vs Bengaluru’s sub-8% (11.4% Q1 2026), reflecting a larger supply pipeline relative to currently absorbed demand.
Which Bengaluru micro-markets see the most GCC demand?
ORR, Whitefield, and Sarjapur — vacancy as low as 2% versus the 11.4% city-wide figure.
Sources: JLL; CBRE India; Nasscom-Zinnov India GCC Landscape Report 2026; Knight Frank India.