Business EconomyPosted at: Oct 8 2026 3:08PM


IT loses dominance in Bengaluru office market as GCCs drive demand: Brigade

Bengaluru, Oct 8 (UNI) Bengaluru's office market is undergoing a structural shift, with traditional IT and IT-enabled services losing their dominance to Global Capability Centres (GCCs), even as demand for office space remains robust, Brigade Group Chairman MR Jaishankar said on Thursday.
The share of IT and ITES in Bengaluru's office absorption has fallen sharply from around 65 per cent a decade ago to nearly 30 per cent currently, with GCCs emerging as a major driver of demand, he said.
Despite concerns over artificial intelligence (AI) disrupting the technology workforce and reducing demand for office space, Jaishankar said it had so far not witnessed companies giving up office space because of AI-led productivity gains.
“What we've noticed is that Bangalore, maybe 10 years ago, was extremely significantly dependent on IT and ITES. So 65 per cent of all office absorption used to come from IT and ITES. But now that has reduced,” he said.
Jaishankar said Bengaluru recorded around 20-22 million sq ft of office absorption during the previous calendar year, while around 16 million sq ft had already been absorbed in the first three quarters of 2026.
He also expects the city's full-year office absorption to reach around 20-21 million sq ft.
Jaishankar said the changing composition of demand offered some insulation to Bengaluru's office market from the uncertainties surrounding traditional IT hiring.
“Despite IT and ITES, the dependency on IT and ITES has significantly come down,” he said, pointing to the growing contribution of GCCs.
On the impact of AI, Jaishankar said GCCs were indicating that they could hire fewer people in the future by using AI to improve productivity, but this had not yet translated into companies surrendering office space.
The shift is significant for Bengaluru, India's largest technology and GCC hub, as multinational companies increasingly use their India centres not merely for back-office functions but for technology, product development, research, engineering and other high-value operations.
Brigade, which has around 10 million sq ft of commercial development under various stages of construction, said it remained confident about the long-term prospects of the Bengaluru office market.
Jaishankar also identified data centres as an emerging real estate opportunity, although it is not currently active in the segment.
“There is huge demand for data centres. We are not yet in the business of data centres, but given the right opportunity, we may evaluate,” he said.
The comments come as Brigade marks 40 years of operations and plans a major expansion across residential, commercial and hospitality segments.
UNI BDN
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