November 29, 2025: Tata Consultancy Services (TCS) has emerged as the single largest office space occupier between FY25 and H1 FY26, leasing nearly 3 million sq ft across Bengaluru, Chennai, and Hyderabad, according to new data released by ICRA on November 27. The report shows that the Indian Information Technology–Business Process Management (IT-BPM) sector recorded unprecedented commercial office leasing during this period, driven significantly by major expansions from Global Capability Centres (GCCs), which contributed close to 40% of total demand in FY26.
“The surge in demand for office space remains buoyant, fueled by the IT-BPM and BFSI sectors,” said Anupama Reddy, Vice President & Co-Group Head at ICRA.
ICRA noted that office space absorption hit new highs in FY26 and is expected to maintain this momentum into FY2027. The analysis highlights that TCS alone leased more than 1.4 million sq ft in Bengaluru and over 1 million sq ft in Hyderabad during the period, underscoring the sector’s renewed appetite for large-scale expansions. Additional major deals included significant commitments from Google IT Services and Microsoft India in Bengaluru and Hyderabad, reinforcing the industry’s long-term confidence in India.
Alongside technology firms, the BFSI sector also logged steady expansion, with notable transactions from J.P. Morgan and Barclays. Reddy added that “despite global headwinds, including policy tightening and trade restrictions in the US, office leasing activities by the GCCs in India have remained buoyant.” ICRA estimates GCCs will lease 50–55 million sq ft between April 2025 and March 2027, accounting for about 40% of incremental demand.
The share of GCC-driven leasing has grown from 27% in FY2022 to 35% in FY2024 and is projected to reach 38–40% in FY2026 and FY2027. This rise is supported by India’s cost advantages, resilient tech ecosystem, skilled workforce, and policy stability, making it a preferred destination for global firms.
Among cities, Bengaluru led with IT/ITES comprising 51% of its GCC base, followed by Hyderabad at 49%. Delhi NCR displayed a stronger manufacturing presence with 26%, while Mumbai maintained a 17% concentration in BFSI-focused GCCs.
