Hyderabad GCC Growth: City Set to Add 50–70 Global Capability Centres

Hyderabad GCC growth is accelerating as global companies expand technology, engineering, financial services, life sciences and digital operations in the city. While Bengaluru remains India’s largest GCC hub by total centre count, Hyderabad has emerged as the fastest-growing among four major cities in new GCC additions.

According to a report by Anarock Research & Advisory and FICCI, Hyderabad added around 70 GCCs in FY25, significantly ahead of Bengaluru, Pune and Chennai. The city is now expected to attract another 50–70 GCCs within a year, potentially strengthening its position as one of India’s most important destinations for multinational corporate operations.

The expansion is also reshaping Hyderabad’s commercial real estate market. Foreign companies setting up GCCs leased approximately 4.5 million sq ft of office space in 2025, compared with 1.9 million sq ft in 2021. GCC leasing crossed 3 million sq ft during the first half of 2026 alone.

Hyderabad GCC Growth Outpaces Bengaluru in New Additions

Hyderabad currently has around 515 Global Capability Centres, employing more than 3 lakh people. That represents roughly 20% of India’s total GCC base, according to the report.

Bengaluru remains far ahead in absolute numbers, with more than 880 GCCs. Pune has over 475 and Chennai has more than 280. However, the pace of new additions tells a different story.

Hyderabad’s 70 new additions in FY25 demonstrate that the city is competing not merely on cost but increasingly on talent availability, infrastructure and the ability to support complex business functions.

Why Global Companies Are Choosing Hyderabad

Several factors are contributing to Hyderabad’s growing appeal among multinational companies. The city has developed a large technology workforce while simultaneously building expertise in pharmaceuticals, life sciences, financial services and advanced engineering.

The report estimates that Hyderabad has an IT workforce of around 1 million and produces more than 4 lakh STEM graduates annually. This provides companies with access to a large talent pool as they establish or expand specialised teams.

Office costs are another important factor. Average office rents in Hyderabad are currently around ₹75 per sq ft per month, compared with a pan-India average of approximately ₹96 per sq ft per month.

For large GCCs requiring hundreds of thousands of square feet, even a relatively modest difference in rental costs can significantly influence long-term operating expenses.

Hyderabad Is Moving Beyond Traditional IT Outsourcing

One of the most important changes in Hyderabad’s GCC ecosystem is the shift in the type of work performed by these centres.

Earlier generations of offshore centres were often focused on back-office support, routine technology services and cost-efficient operations. Today’s GCCs increasingly perform functions closer to the core business of their parent companies.

• Artificial intelligence and machine learning
• Cloud engineering
• Product development
• Cybersecurity
• Financial analytics
• Fintech and regulatory operations
• Drug development analytics
• Clinical data management
• Semiconductor and chip design
• Research and development
• Embedded systems
• Digital transformation

This evolution is strategically important because high-value functions generally require specialised employees and larger, better-equipped offices. As a result, GCC expansion can generate stronger and more durable commercial real estate demand than traditional support operations.

50–70 More GCCs Could Arrive Within a Year

The Anarock-FICCI report expects Hyderabad to add another 50–70 GCCs across technology, engineering, BFSI, life sciences, analytics, consulting and digital operations within a year.

If that forecast materialises, Hyderabad’s GCC ecosystem could expand rapidly from its current base of around 515 centres.

The expected additions also indicate that the city’s growth is becoming increasingly diversified. Instead of relying almost entirely on technology companies, Hyderabad is attracting multinational operations across multiple industries.

That diversification can make the office market more resilient because weakness in one sector may be partly offset by demand from another.

GCC Leasing Has More Than Doubled Since 2021

The growth in GCC numbers is already translating into measurable demand for office space.

Foreign companies establishing GCCs leased around 4.5 million sq ft in Hyderabad during 2025. In 2021, the comparable figure was approximately 1.9 million sq ft.

The momentum continued into 2026, with GCC absorption reaching around 3.05 million sq ft in H1 2026.

This is significant because GCCs typically require modern Grade A buildings with technology infrastructure, security, employee amenities and flexible floor configurations. Their expansion can therefore support demand for higher-quality commercial properties.

Hyderabad Office Market Shows Improving Demand-Supply Balance

Hyderabad’s broader commercial real estate market is also showing signs of improvement.

The city currently has approximately 125 million sq ft of Grade A office stock, representing around 15% of India’s Grade A office inventory. Another 36 million sq ft of supply is expected to come online.

Despite a moderation in new office completions, occupier demand has remained relatively strong.

The decline in vacancy from 26.3% in 2025 to 23.5% in the first half of 2026 suggests that available office space is being absorbed at a healthier pace.

Why Falling Vacancy Matters for Hyderabad Real Estate

A falling vacancy rate can have important implications for landlords, developers and investors.

When more companies occupy existing office stock, landlords gain greater pricing power, particularly for premium buildings in locations with strong connectivity and amenities. Developers may also become more confident about launching new Grade A projects.

However, Hyderabad still has substantial upcoming supply. That means the market’s long-term performance will depend on whether GCC and other corporate demand continues to grow quickly enough to absorb new construction.

The balance between new supply and actual tenant demand will therefore remain a key indicator for the city’s commercial property market.

Western Hyderabad Could Become the Strategic GCC Corridor

The western corridor is expected to remain the strategic commercial cluster for Hyderabad as GCC activity expands.

This part of the city has attracted significant technology and corporate occupiers and offers access to established office infrastructure. Continued investment in Grade A developments can further strengthen its position.

For global companies, location decisions involve more than headline rent. Access to skilled workers, employee commute times, surrounding residential development, transport connectivity and availability of expansion space can all influence the total cost of operating a GCC.

Hyderabad Could See 8–12 Million Sq Ft of Additional Office Demand

The GCC boom is only one component of the expected office demand increase.

The report estimates that GCCs, IT-ITeS companies, BFSI firms, flexible office operators and allied services could collectively generate approximately 8–12 million sq ft of additional office demand over the next three to five years.

This projection creates an important opportunity for Hyderabad’s developers and landlords. Companies expanding their GCC footprints will increasingly seek larger campuses rather than small satellite offices, particularly when their operations include R&D, engineering and corporate functions.

Large-format leasing can create stable demand for well-designed Grade A developments and may encourage developers to focus on high-quality office campuses rather than simply increasing total supply.

GCC Expansion Is Changing the Quality of Office Demand

The significance of Hyderabad’s GCC growth is not just about the number of new centres. The quality of demand is changing.

A company establishing an AI research unit, semiconductor design team or pharmaceutical analytics centre has different requirements from a conventional back-office operation.

These businesses may require advanced data infrastructure, specialised laboratories or engineering facilities, collaboration areas, higher security standards and premium employee amenities.

As more companies move high-value functions to Hyderabad, the city’s office market could gradually become more sophisticated and less dependent on low-cost outsourcing.

Hyderabad vs Bengaluru: The Real Estate and GCC Competition

Bengaluru remains India’s dominant GCC destination in terms of total centres and has a deep technology ecosystem. However, Hyderabad’s recent growth suggests that multinational companies increasingly have viable alternatives when choosing locations for new operations.

Hyderabad’s advantage lies in combining a large technology talent base with relatively lower office costs and a broader sector mix.

The competition is therefore unlikely to be a simple contest over which city has more GCCs. Companies may increasingly divide operations across multiple Indian locations based on talent requirements, costs, business continuity and specialised expertise.

What Hyderabad’s GCC Boom Means for Jobs

GCC expansion could have a multiplier effect on Hyderabad’s employment ecosystem.

Direct hiring by multinational companies is only one part of the impact. Growing corporate campuses also support demand for facility management, security, transportation, food services, business support, professional services and commercial infrastructure.

More importantly, the increasing focus on advanced functions could create opportunities for workers with specialised skills in AI, cloud technology, cybersecurity, financial analytics, life sciences and engineering.

This could strengthen Hyderabad’s position as a destination for high-value technology and knowledge-based employment.

Hyderabad’s Life Sciences and BFSI Mix Adds Resilience

Another major advantage is sector diversification.

Hyderabad has established strengths in pharmaceuticals and life sciences while continuing to expand in financial services and technology. This gives GCC operators more reasons to consider the city for specialised operations beyond conventional IT services.

A diversified occupier base can also benefit the property market by reducing dependence on a single industry cycle.

What to Watch in Hyderabad’s GCC Market

• New GCC announcements: The pace of new multinational centres will determine whether the 50–70 centre forecast is achieved.
• Leasing volumes: Continued absorption above recent levels would support the case for sustained office demand.
• Vacancy: Further declines would signal stronger utilisation of existing Grade A stock.
• Rental growth: Higher demand could gradually narrow Hyderabad’s rental discount against other major office markets.
• Western corridor development: Infrastructure and new office projects will influence where future GCC clusters emerge.
• Talent availability: Maintaining a strong pipeline of technology and STEM graduates will remain essential.

Conclusion: Hyderabad Is Becoming a Global Capability Powerhouse

Hyderabad GCC growth has entered a new phase. The city may still trail Bengaluru in the total number of Global Capability Centres, but its pace of new additions highlights the strength of its current expansion.

With around 515 GCCs, more than 3 lakh employees, a large technology workforce, competitive office rents and expertise spanning technology, BFSI and life sciences, Hyderabad offers multinational companies a combination of scale and cost efficiency.

The expected addition of another 50–70 GCCs could further transform the city’s commercial landscape. At the same time, the shift toward AI, R&D, engineering, analytics and other high-value functions means the impact will extend beyond office leasing.

If current trends continue, Hyderabad could increasingly compete with India’s traditional technology centres not simply as a lower-cost alternative, but as a major global hub for innovation, specialised talent and corporate decision-making.