In a significant shift within India’s commercial real estate landscape, Mumbai has emerged as the leading city for office leasing by Banking, Financial Services, and Insurance (BFSI) Global Capability Centres (GCCs), according to a recent report by Savills India titled “Global Capability Centres: Enabling India’s Strategic Advantage.” This development is particularly noteworthy given Bengaluru’s established reputation as a hub for technology talent and innovation. The juxtaposition of these two cities highlights the evolving dynamics of the Indian market, where financial services are increasingly finding a home in Mumbai, while tech-driven enterprises continue to thrive in Bengaluru.
Mumbai’s ascent in office leasing for BFSI GCCs underscores the city’s robust financial ecosystem. As India’s commercial capital, Mumbai boasts a well-established network that encompasses primary, secondary, and tertiary financial services. This intricate web of financial institutions, regulatory bodies, and support services positions Mumbai as a natural choice for global financial operations. The city’s infrastructure, combined with its strategic location, makes it an attractive destination for BFSI-focused GCCs looking to establish or expand their presence in India.
Interestingly, while Bengaluru continues to lead in terms of talent and technological prowess, it is Mumbai that recorded the highest office leasing activity among BFSI GCCs. This trend reflects a growing recognition of Mumbai’s strengths in financial services, which are critical for the operations of these global centres. The report indicates that Mumbai’s appeal lies not only in its financial capabilities but also in its ability to provide a conducive environment for businesses to flourish.
Bengaluru, on the other hand, remains the undisputed leader in India’s GCC real estate landscape. Between 2020 and 2024, the city accounted for an impressive 42.8 million square feet of office leasing, representing 38% of the national total. This dominance can be attributed to Bengaluru’s deep technology ecosystem and its rich talent pipeline, which produces over 2.2 million STEM graduates annually. The city’s educational institutions and research facilities contribute significantly to its status as a breeding ground for innovation and technological advancement.
The competition between Mumbai and Bengaluru is further intensified by the presence of other key players in the GCC market, notably Hyderabad and Pune. Together, these four cities—Bengaluru, Mumbai, Hyderabad, and Pune—have driven nearly 70% of India’s total GCC absorption, which reached 112 million square feet during the same period. This collective growth, at a compound annual growth rate (CAGR) of 12%, illustrates the increasing demand for office space among GCCs across the country.
Savills attributes Bengaluru’s dominance in the GCC sector to its thriving technology ecosystem, which is complemented by a steady influx of skilled professionals. The city continues to lead in IT-BPM (Information Technology-Business Process Management) GCCs, commanding a remarkable 77% of leasing among the top three cities. Additionally, in sectors such as engineering and manufacturing, Bengaluru, Pune, and Chennai collectively account for 78% of demand, showcasing the diverse opportunities available in these regions.
Looking ahead, the future of India’s GCC office demand appears promising. Projections indicate that the demand for office space is expected to reach 180 million square feet between 2025 and 2030, driven by a realistic CAGR of 8.2%. Emerging sectors such as automotive, life sciences, and semiconductors are anticipated to play a pivotal role in this growth, particularly in technology-led cities like Bengaluru and Mumbai.
As the landscape evolves, several trends are likely to shape the next wave of GCC expansion. Green infrastructure, hybrid work models, and strategic location choices will become defining characteristics of future developments. Arvind Nandan, Managing Director of Research and Consulting at Savills India, emphasizes that GCC real estate is increasingly viewed as an investment rather than merely a cost. This shift reflects a broader understanding of the importance of creating environments that attract talent and foster innovation.
Naveen Nandwani, Managing Director of Commercial Advisory & Transactions at Savills India, echoes this sentiment, noting that the demand for future-ready workspaces is being driven by a transition toward high-value technology, digital, and innovation functions. This evolution is reshaping the expectations of businesses and employees alike, as organizations seek to create spaces that facilitate collaboration, creativity, and productivity.
Currently, India hosts approximately 1,800 GCCs employing around 1.9 million professionals. This number is projected to rise to 2,200 GCCs and 2.8 million employees by 2030, reflecting the growing significance of these centres in the Indian economy. Core sectors such as software and IT services, BFSI, engineering and manufacturing, pharmaceuticals, retail, and consumer services continue to dominate the landscape, while newer clusters are gaining traction.
One notable aspect of GCC roles in India is the premium they command in terms of salaries. Professionals working in GCCs typically earn 12–20% higher salaries compared to their counterparts in traditional IT services. This wage disparity is driven by the increasing demand for specialized skills in areas such as artificial intelligence (AI), machine learning (ML), data engineering, cybersecurity, intelligent automation, and cloud platforms. As businesses strive to remain competitive in a rapidly evolving technological landscape, the need for skilled professionals in these domains is more critical than ever.
The leasing momentum in the GCC sector is expected to remain strong, with projections indicating that GCCs are likely to absorb around 30 million square feet of office space annually between 2025 and 2030. This sustained demand is indicative of the confidence that businesses have in India’s potential as a global hub for GCC operations.
In conclusion, the competition between Mumbai and Bengaluru for dominance in the GCC office leasing market highlights the dynamic nature of India’s economic landscape. While Bengaluru continues to excel in technology and talent, Mumbai’s emergence as a leading hub for BFSI GCCs underscores the importance of a diversified approach to economic growth. As both cities continue to evolve and adapt to changing market demands, they will play crucial roles in shaping the future of India’s commercial real estate sector.
The interplay between these two cities, along with the contributions of Hyderabad and Pune, paints a picture of a vibrant and competitive market that is poised for continued growth. As India navigates the complexities of a post-pandemic world, the emphasis on innovation, sustainability, and strategic investments will be key drivers of success in the GCC sector. With the right focus and commitment, India is well-positioned to solidify its status as a global leader in the realm of Global Capability Centres, attracting businesses and talent from around the world.