BENGALURU, India (Diya TV) — India’s commercial real estate market is booming, thanks to a surge in office leasing by American companies. Bengaluru, Hyderabad, and Delhi-NCR have emerged as the top destinations, with 2024 setting a new record for annual leasing activity by US firms, according to a report by IANS.

The push comes mainly from the expansion of Global Capability Centers (GCCs), as US corporations double down on India as a key location for innovation and strategic operations. Between 2022 and the first quarter of 2025, Bengaluru alone captured 35% of all US-led office leasing activity. Hyderabad and Delhi-NCR secured the second and third spots, with Chennai and Pune also attracting growing interest.

US occupiers held a robust 34.2% share of the Indian office market during this period, as per data from JLL India. Although their percentage share has slightly dipped compared to pre-pandemic levels, the actual volume of space leased increased by nearly 16%.

“This points to a shift in strategy,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India at JLL. “US firms are not just outsourcing. They’re making India a central part of their global business architecture.”

He also noted that over two-thirds of the leasing activity from US-based firms is led by GCCs, showing how integral these centers have become in long-term planning.

Bengaluru, already known as India’s Silicon Valley, is now a multi-sectoral magnet. Beyond technology, it draws firms across aerospace, retail, and professional services. The city’s skilled talent pool and mature infrastructure make it a top choice for US tech giants and service providers.

Hyderabad follows closely. Once a pharma and biotech hub, it now plays a growing role in BFSI (banking, financial services, and insurance) and healthcare operations.

Delhi-NCR, with its strategic location and access to decision-makers in the national capital, remains attractive to companies seeking visibility and influence.

Chennai and Pune are also gaining traction. Chennai offers a balanced market, drawing companies in BFSI, e-commerce, and IT services. Pune appeals to R&D-focused firms and automotive companies, thanks to its academic institutions and evolving infrastructure.

Mumbai continues to serve as India’s financial nucleus. US-based financial services firms prefer the city for setting up GCCs tailored to BFSI needs. With its strong connectivity and deep talent pool in finance and compliance, Mumbai remains indispensable for firms focused on banking and capital markets.

While the Indian office leasing market is diversifying with new global entrants, US companies remain the dominant players. Their continued investment signals more than just a cost advantage—it reflects trust in India’s evolving economic environment.

The trend also highlights the maturation of Indian metros as reliable and scalable destinations for high-value operations. Whether it’s AI development, financial analysis, or healthcare innovation, US companies see India not just as a support base but as a strategic command center.

As demand grows, so does the pressure on Indian cities to keep up with expectations—quality infrastructure, talent readiness, and regulatory ease will define who stays on top.