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The surge of Global Capability Centres (GCCs) in India is strengthening the country’s commercial real estate market and boosting the appeal of Real Estate Investment Trusts (REITs) for investors. India currently hosts over 1,700 GCCs, with that figure expected to nearly double to about 3,000 in the next 5–7 years. These centres, driven by multinational firms seeking skilled talent and premium office space, now account for roughly 35–40% of total office space absorption in key markets. This growing demand has lifted commercial occupancy rates into the high 80s and pushed developers to build high-quality, tech-enabled office buildings, benefiting REIT portfolios.
REITs pool income-producing real estate assets, letting investors earn returns without directly owning property. India’s five publicly listed REITs have seen strong interest as occupiers like GCCs, technology companies, corporates and banks lease space. Aside from rental income and diversification advantages, REITs offer stable distributions and potential total returns around 12–14% over the long term, though risks remain from economic cycles, interest rates and past occupancy disruptions.
The expansion of GCCs also contributes to job creation and wider economic activity, supporting both white- and blue-collar roles. Looking ahead, the REIT market could broaden into new asset classes such as data centres and logistics, reflecting sustained confidence in India’s commercial real estate growth story.
