US firms expand office leasing footprint in India; GCCs account for over two-thirds of activity - Hindustan Times
Jun 14, 2025 05:59 PM IST
US firms expanded their office leasing footprint in India in 2024, led by the rapid growth of Global Capability Centers (GCCs) that accounted for more than two-thirds of all leasing activity by American companies. While the technology sector continues to dominate, the fastest growth is now coming from BFSI and manufacturing GCCs underscoring India’s evolving appeal beyond traditional IT services. Bengaluru remained the top destination, attracting 35% of US leasing activity, followed by Hyderabad and Delhi NCR, a report by JLL has said.
The leasing volumes from 2017 through Q1 2025 showed US occupiers maintained a commanding 34.2% share of India's office market during the 2022-Q1 2025 period, with 2024 recording the highest annual leasing numbers in absolute terms. In fact, Q1 2025 has also maintained the same quarterly average as the previous year.
The report noted that while US firms' market share has modestly declined since the pre-pandemic period, their absolute leasing volume has increased by approximately 16%, indicating a strategic deepening of American corporate presence in India despite overall market diversification.
Bengaluru has strengthened its position as the preferred destination, capturing 35% of all US occupier leasing activity between 2022-Q1 2025. Hyderabad and Delhi NCR have emerged as the second and third most attractive markets, followed by Chennai and Pune, it said.
While technology remains the dominant sector, BFSI (Banking, Financial Services and Insurance) and manufacturing-oriented GCCs recorded the most significant gains in leasing share during this period. Manufacturing GCCs showed the largest percentage increase between the two periods analyzed, directly reflecting the impact of Make in India policy initiative, which has attracted more R&D operations, the report said.
“US-origin GCCs consistently represent over two-thirds of all leasing activity by American firms. This underscores India's central position in long-term business strategies for major US corporations. The predominance of GCCs within US firms' real estate footprint demonstrates that American companies view India not merely as an outsourcing destination, but as a critical hub for innovation and strategic operations,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Within the country, each city offers distinct advantages: Bengaluru has evolved into a multi-sectoral powerhouse beyond tech, Chennai boasts India's most balanced market across BFSI, e-commerce, and tech sectors, Mumbai serves as the financial nerve center where US-based BFSI GCCs dominate, and Hyderabad has established itself as a specialized hub for BFSI, healthcare, and pharmaceutical operations, he said.
“India's combination of skilled talent at scale, supportive ecosystem, cost advantages, and growth-oriented policy environment continues to make it an increasingly attractive destination for US corporations looking to establish and expand their global capabilities,” said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Current active space requirements analysis shows US firms hold a 45% share in overall demand, rising to 55% when considering only non-domestic occupiers. GCC-led requirements constitute 70% of all space demand from US occupiers, signaling continued long-term investment and confidence in India as a key R&D and innovation hub, he said.
