India’s office real estate investment trusts are getting a stronger leasing engine from global capability centres just as demand from traditional IT services firms cools, lifting occupancy and supporting rents across the country’s biggest commercial portfolios.
India office REITs gain from GCC leasing
That shift matters because office Reits are among the main proxies for India’s premium workspace market, and the tenant mix is moving toward higher-value occupiers with longer horizons, deeper capital needs and more specialized space requirements. For investors, that usually means steadier occupancy, better pricing power and less reliance on the volatile hiring cycles that once drove office demand.
Sentiment Indicators
During April-September, GCCs drove a larger share of leasing across Indian cities even as AI-related uncertainty hangs over long-term office demand. Embassy Reit said the change reflects a structural move toward engineering, R&D, AI and analytics functions, while Brookfield India Real Estate Trust said GCCs accounted for 51% of the 1.6 million sq ft it leased in the September quarter.
Mindspace Business Parks Reit said GCCs now make up 52% of leasing, up from 48% two years ago, while IT services demand has slipped to 21% from 24%. Tenants include British Petroleum, Hitachi, JPMorgan and Qualcomm, underscoring how multinationals are expanding higher-value operations in India even as legacy outsourcing demand normalizes.
The broader market backdrop is still strong. JLL India said gross office leasing hit a record 61.06 million sq ft in January-September, up 8.1% from a year earlier, with GCCs taking 26.2 million sq ft — already 84% of their full-year 2025 leasing volume. Industry players now expect office leasing to reach a record high in 2027, topping the 83 million sq ft gross leasing peak seen in 2025.
The demand shift is already showing up in portfolio metrics. Knowledge Realty Trust lifted committed occupancy to 94% from 92% over the past year, while Bagmane Prime Office Reit said committed occupancy reached 98.7% across its completed portfolio after signing 1.2 million sq ft in a single quarter, 96% of it to GCCs and much of it before buildings were completed.
For investors, the message is that India office Reits are less exposed to the old IT outsourcing cycle and more tied to the expansion of global corporate functions in cities such as Bengaluru and Hyderabad. The near-term risks are AI adoption, geopolitical shocks and any slowdown in multinational expansion, but the current leasing mix suggests office landlords still have room to push rents and maintain tight occupancy.
| Entity | Gains | Losses |
|---|---|---|
| GCC tenants | ▲More space choices, quality buildings | ▼Higher rents and tighter competition |
| Office Reits | ▲Higher occupancy, stronger leasing mix | ▼Less exposure to broad IT demand |
| IT services firms | ▲Lower pressure to expand space | ▼Shrinking share of leasing |
| Long-term landlords | ▲Sticky tenants, better pricing power | ▼Greater dependence on multinational expansion |
