Tata Consultancy Services (TCS) leased nearly 3 million square feet of office space in FY25 and H1FY26 across Bengaluru, Chennai and Hyderabad, making it the highest commercial office expansion by a corporate in this period, data from ICRA released on November 27 shows.
Overall Indian Information Technology-Business Process Management (IT-BPM) sector witness the highest surge in commercial office space leasing fuelled by massive expansions from Global Capability Centres (GCCs) too. GCCs contributed nearly 40 per cent of the demand in FY26, the report said.
“The surge in demand for office space remains buoyant fueled by the IT-BPM and BFSI sectors,” Anupama Reddy, Vice President & Co-Group Head, ICRA said.
How much office did IT sector lease in FY26?
Office space uptake has hit new highs in F26, a trend expected to continue into FY2027. “The IT-BPM sector has re-established its position as the undisputed leader in this massive office leasing boom. An analysis of key leasing transactions in FY2025 and H1 FY2026 reveals a clear trend, with industry giants such as Tata Consultancy Services (TCS) securing massive spaces exceeding 1.4 million square feet in Bengaluru and over 1 million square feet in Hyderabad,” the report said.
Other major leases came from Google IT Services and Microsoft India who committed significant investments into office leasing in Bengaluru and Hyderabad. This emphasises the sector's robust growth trajectory and long-term commitment to the Indian market.
Further, right behind the technology sector, the Banking, Financial Services and Insurance (BFSI) sector too had a robust expansion, with prominent transactions from firms like J.P. Morgan and Barclays, highlighting a diversified yet concentrated demand pool.
GCCs led the charge
Reddy added, “Despite global headwinds, including policy tightening and trade restrictions in the US, office leasing activities by the GCCs in India have remained buoyant. ICRA expects the GCCs to lease 50–55 msf during Apr-2025 to Mar-2027 period, accounting for around 40% of incremental office demand over the said duration.”
The share of GCCs in total office leasing rose from 27% in FY2022 to 35% in FY2024 and is forecasted to reach 38-40% in both FY2026 and FY2027. This surge is driven by India’s positioning as a market with value arbitrage, resilient tech infrastructure, a deep talent pool, and consistent policy support, making it a preferred global hub for multinationals.
Among cities, Bengaluru dominated the scene with IT/ITES contributing nearly 51% of its GCC base. Hyderabad had a similar tech-heavy profile with 49% of its GCCs in IT/ITES. Other cities show more diversification: Delhi NCR has a strong 26% share in Manufacturing GCCs, while Mumbai has a significant 17% concentration in BFSI-centric global centres.
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