BFSI overtakes tech as fastest-growing driver of GCC office leasing in India: Report

India's global capability centre (GCC) office market is becoming less dependent on technology occupiers, with the Banking, Financial Services and Insurance (BFSI) sector emerging as the fastest-growing source of leasing demand, according to a new analysis by Knight Frank India.

The property consultancy's sector-wise assessment of GCC transactions across India's eight leading office markets found that BFSI occupiers leased 7.32 million sq. ft of office space during the first half of 2026, a 70% increase from 4.31 million sq. ft in the corresponding period a year earlier.

The growth helped BFSI become the largest contributor to GCC-oriented office transactions, accounting for 36% of the total 20.6 million sq. ft leased across the eight cities during H1 2026.

The findings point to a significant shift in India's commercial real estate landscape as financial services companies expand their global operations and increase investments in technology, analytics and business support functions.

Financial services emerge as the new growth engine

For years, technology companies have been the dominant force behind GCC expansion and office absorption in India. The latest data suggests a broader range of industries is now driving demand.

According to Knight Frank India, BFSI occupiers recorded the strongest growth among major sectors, reflecting rising demand for high-quality office spaces from global financial institutions.

Key GCC leasing data for H1 2026:

• BFSI: 7.32 million sq. ft, up 70% year-on-year
• Other services: 5.10 million sq. ft, up 16% year-on-year
• IT/ITES: 4.13 million sq. ft, down 28% year-on-year
• Manufacturing: 4.05 million sq. ft, down from 4.67 million sq. ft a year earlier
• Total GCC transactions: 20.6 million sq. ft across eight major cities

The numbers indicate a more diversified GCC ecosystem, with financial services companies increasingly becoming major occupiers in India's office market.

Diversification changes the GCC landscape

Viral Desai, International Partner and Senior Executive Director at Knight Frank India, said the market is witnessing a structural change as demand expands beyond traditional technology occupiers.

According to Desai, GCC-led demand is becoming increasingly diversified, creating a broader occupier base across India's commercial real estate sector.

The broader services category also contributed to this trend. Office transactions from non-technology service businesses rose to 5.10 million sq. ft in H1 2026, compared with 4.41 million sq. ft during the same period in 2025.

The increase reflects growing demand from a wider range of service-sector organisations and highlights the expanding depth of India's services economy.

For developers and landlords, a more diverse occupier mix reduces dependence on a single industry and creates a wider pool of potential tenants.

Technology leasing enters a period of recalibration

The rise of BFSI has coincided with a slowdown in technology-related office demand.

Knight Frank India's analysis found that IT and IT-enabled services (IT/ITES) absorption declined 28% year-on-year, falling to 4.13 million sq. ft from 5.71 million sq. ft in H1 2025.

The decline comes as global technology companies reassess expansion strategies, workplace requirements and international operations amid changing market conditions.

While the drop does not necessarily signal a long-term contraction in technology demand, it marks a notable pause for a sector that has historically dominated India's office leasing activity and GCC growth story.

Manufacturing occupiers also recorded a modest decline, with office absorption falling to 4.05 million sq. ft from 4.67 million sq. ft a year earlier.

A more balanced office market takes shape

The latest leasing trends suggest India's GCC market is entering a more mature phase, where growth is supported by multiple industries rather than a single dominant sector.

Financial services companies are expanding their presence as India strengthens its position as a global hub for operations, technology development, analytics and business support services.

Desai said the 70% year-on-year increase in BFSI-led GCC transactions highlights the sector's growing appetite for premium office spaces, while the moderation in IT/ITES demand reflects an ongoing realignment of global strategies.

The changing sector mix could have lasting implications for India's commercial property market. A broader range of GCC occupiers provides greater resilience for landlords and developers, while strengthening the foundations of long-term office demand.

With 20.6 million sq. ft of GCC transactions recorded in the first half of 2026, the story is no longer solely about technology-led expansion. Financial services firms are increasingly taking centre stage, reshaping the composition of India's office leasing market and creating a more diversified growth trajectory for the sector.