New Delhi, India, September 4, 2026 – India’s Global Capability Centre (GCC) ecosystem is undergoing a notable shift, with Banking, Financial Services and Insurance (BFSI) companies emerging as the largest source of office leasing demand in the first half of 2026, according to data from Knight Frank India.
BFSI companies leased approximately 7.32 million sq. ft. of office space across India’s eight major office markets during H1 2026, representing a 70% year-on-year increase from the 4.31 million sq. ft. recorded during the same period in 2025.
The strong performance has pushed BFSI ahead of traditional technology occupiers, signalling a broader diversification of India’s GCC office market.
BFSI Leads India’s GCC Office Demand
Knight Frank India’s sector-level assessment shows that GCC-related transactions across eight major cities totalled 20.6 million sq. ft. in H1 2026.
BFSI accounted for roughly 36% of this leasing activity, making it the largest contributing sector during the period.
GCC leasing activity by sector in H1 2026
- BFSI: 7.32 million sq. ft. — up 70% YoY
- Other services: 5.10 million sq. ft. — up 16% YoY
- IT/ITES: 4.13 million sq. ft. — down 28% YoY
- Manufacturing: 4.05 million sq. ft. — down from 4.67 million sq. ft.
- Total GCC transactions: 20.6 million sq. ft.
The numbers indicate that India’s GCC expansion is increasingly being driven by a wider mix of industries rather than being dominated by technology companies.
Financial Services Reshape the GCC Market
The growing contribution from BFSI reflects the increasing scale of global financial institutions’ operations in India.
Financial services companies are expanding teams involved in areas such as technology, analytics, operations, finance and global business support, creating sustained demand for modern office infrastructure.
According to Viral Desai, International Partner and Senior Executive Director at Knight Frank India, the GCC market is experiencing a structural shift as demand spreads across sectors and creates a broader occupier base.
For commercial real estate developers and landlords, this diversification could reduce reliance on technology companies while opening the market to a larger pool of multinational occupiers.
IT/ITES Leasing Declines 28%
The rise of BFSI leasing comes alongside a significant moderation in technology-related office demand.
IT and IT-enabled services companies leased 4.13 million sq. ft. during H1 2026, down 28% from 5.71 million sq. ft. in H1 2025, according to Knight Frank India’s analysis.
The decline comes as global technology companies reassess office requirements, international expansion strategies and workforce models.
However, the reduction in leasing does not necessarily indicate a permanent reversal in India’s technology GCC opportunity. Instead, it may represent a period of recalibration following years of rapid technology-led expansion.
Manufacturing also recorded a moderate decline, with leasing falling to 4.05 million sq. ft. from 4.67 million sq. ft. a year earlier.
India’s GCC Story Is Becoming More Diverse
The latest numbers suggest that India’s GCC market is entering a more diversified phase.
Technology remains an important component of the ecosystem, but financial services and other service industries are increasingly contributing to office absorption.
Other services accounted for 5.10 million sq. ft. of transactions in H1 2026, compared with 4.41 million sq. ft. in the corresponding period last year.
This broader demand base could make India’s office market more resilient by reducing its dependence on a single sector.
For developers, the shift also creates an opportunity to design and position office developments for the specific requirements of financial institutions, analytics operations, technology teams and other global business functions.
What the Shift Means for India’s Commercial Real Estate Market
The 20.6 million sq. ft. of GCC transactions recorded in H1 2026 highlights the continuing importance of global capability centres to India’s commercial real estate sector.
But the composition of that demand is changing.
The 70% growth in BFSI-led leasing, combined with the decline in IT/ITES absorption, suggests that India’s GCC expansion is moving towards a more balanced industry mix.
Financial institutions are increasingly using India not only for back-office functions but also for technology, analytics and higher-value global operations. That could support continued demand for premium office space across India’s leading business hubs.
For India’s commercial real estate market, the bigger takeaway is clear: the next phase of GCC growth may be less about technology alone and more about the convergence of finance, technology, analytics and global business services.
Source: Knight Frank India
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Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.