New Delhi, Nov 27 India’s commercial office sector is witnessing an unprecedented leasing demand led by the Information Technology‑Business Process Management (IT‑BPM) sector and massive expansions from Global Capability Centres (GCCs), a report showed on Thursday.
The report from rating agency ICRA said that robust absorption is anticipated to fuel a 14-15 per cent expansion in rental inflow and Net Operating Income (NOI) in the commercial office sector in FY26, followed by a 9-10 per cent growth in FY27.
Occupancy in India’s top six cities is projected to improve to 87–88 per cent in FY26 and FY27, up from 86 per cent in FY25.
“The surge in demand for office space remains buoyant, fuelled by the IT‑BPM and Banking, Financial Services and Insurance (BFSI) sectors. Despite global headwinds, including policy tightening and trade restrictions in the US, office leasing activities by the GCCs in India have remained buoyant,” said Anupama Reddy, Vice President and Co‑Group Head at ICRA.
The report forecasts GCCs to lease 50–55 million square feet between April 2025 and March 2027, accounting for about 40 per cent of incremental office demand.
The sustained demand from the GCCs and BFSI, coupled with India’s cost and talent advantages, is setting the stage for a new era of growth and stability in the sector, Anupama said.
The share of GCCs in total office leasing rose from 27 per cent in fiscal 2022 to 35 per cent in fiscal 2024 and is forecast to reach 38 to 40 per cent in fiscal 2026 and fiscal 2027. India became a preferred global hub for capability centres due to enduring value arbitrage, resilient tech infrastructure, a deep talent pool, and consistent policy support, the report noted.
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