While Bengaluru has more than 880 Global Capability Centres (GCCs), Hyderabad has around 515, followed by Pune with over 475 and Chennai with more than 280, according to a report titled ‘Hyderabad: The Rise of a Global Capability Powerhouse’ by Anarock Research & Advisory and FICCI.
Hyderabad, however, led the four cities in new GCC additions in FY25, adding 70 centres, compared with 30-35 in Bengaluru, 15-20 in Pune and 12-15 in Chennai. The city is expected to add another 50-70 GCCs across technology, engineering, BFSI, life sciences, analytics, consulting and digital operations within a year, the report noted.
As of March 2026, Hyderabad had around 515 GCCs employing more than 3 lakh people and accounted for around 20% of India’s total GCCs, transforming the city from a traditional cyber hub into a major GCC destination, the report said.
GCCs, also known as global in-house centres or captives, are offshore units of large multinationals performing technology operations.
Why is Hyderabad seeing an increase in GCCs?
GCCs have become a key driver of demand for Hyderabad’s office market. Office leasing by foreign companies setting up GCCs rose to 4.5 million sq ft in 2025 from 1.9 million sq ft in 2021. In the first six months of 2026, GCC leasing had already crossed 3 million sq ft.
The city’s evolution is increasingly shaped by a shift in GCC operations from traditional support functions to R&D, engineering, analytics, digital, and corporate functions. This transition is expected to strengthen Hyderabad’s position as a hub for global innovation and decision-making, rather than simply a cost-efficient offshore base.
The combination of a deep technology talent pool, competitive occupancy costs, established infrastructure, a growing BFSI and life sciences ecosystem, and expanding Grade A office supply is expected to sustain Hyderabad’s attractiveness to global occupiers, the report noted.
As GCCs continue to scale and diversify, Hyderabad’s office market is likely to see sustained demand through 2029, with the western corridor emerging as the city’s strategic commercial cluster, the report noted.
GCCs, IT-ITeS firms, BFSI companies, flex operators and allied services are expected to have a significant impact on Hyderabad’s commercial real estate landscape, generating an estimated 8-12 million sq ft of additional office demand over the next three to five years, it noted.
“This GCC expansion is already translating into significant real estate demand in the city. The report highlights that GCC office leasing in Hyderabad increased from 1.9 mn sq. ft. in 2021 to 4.5 mn sq. ft. in 2025, while the city recorded 3.05 mn sq. ft. of GCC absorption in H1 2026 alone. The sustained leasing momentum reflects the deepening of Hyderabad’s GCC ecosystem and the increasing preference of global enterprises to establish larger and more sophisticated operations in the city,” said Anuj Puri, chairman, Anarock Group.
Leading global enterprises have established or expanded operations across functions such as AI/ML, cloud engineering, product development, cybersecurity, financial analytics, fintech, regulatory operations, drug development analytics, clinical data, chip design, R&D, embedded systems and digital transformation. This sectoral diversification is making Hyderabad less dependent on any single occupier segment while simultaneously increasing the quality and complexity of office demand, the report noted.
Office market gains from GCC momentum
Hyderabad’s broader office market is already showing signs of a healthier demand-supply balance. The city currently has around 125 million sq ft of Grade A office stock, accounting for around 15% of India’s Grade A office inventory, with another 36 million sq ft of upcoming supply.
Despite office completions moderating from a peak of 17.1 million sq ft in 2022 to 3 million sq ft in H1 2026, occupier demand has remained resilient. Net office absorption stood at 8.5 million sq ft in 2025 and 5.2 million sq ft in H1 2026. At the same time, vacancy declined from 26.3% in 2025 to 23.5% in H1 2026, indicating improved utilisation of available office stock.
The city’s average office rental value currently stands at around ₹75 per sq ft per month, below the pan-India average of ₹96 per sq ft per month, providing occupiers with a relative cost advantage, the report noted.
The report further highlights that Hyderabad’s competitive advantage is increasingly based on a combination of talent, cost, sector depth and ease of operations. The city has an estimated IT workforce of 1 million and produces more than 4 lakh STEM graduates annually. Prime office rents remain below those in Bengaluru, while Hyderabad offers a broader sector mix spanning technology, BFSI, pharma, and semiconductors.
