Synopsis: Global Capability Center (GCC) hiring is boosting mid-income housing demand in Tier-2 cities by creating a large number of high-quality, well-paying jobs, which increases the purchasing power and migration of professionals to these emerging hubs.
GCCs in India have reshaped the employment patterns in Tier-2 towns, thus directly affecting the mid-income housing market through an economic multiplier effect. The number of employees in the GCCs rose from 1.9 million in 2024 to 2.4 million in 2025, a phenomenal growth rate of 26% as compared to traditional IT services with 4-6% growth, creating around 300,000 high-skill jobs every year.
GCC Distribution and Tier-2 City Capture
The absolute GCC numbers are mainly attributed to Bengaluru, which accounts for 34% of the new centers and 26% of the total hiring done by the country. At the same time, Tier-2 cities are slowly but surely stealing the market share by capturing it at a faster rate. More than one-quarter of new GCC setups in the years 2024-2025 were done in Tier-2 locations, which is a clear indication of global companies looking for geographic diversification as a strategy for cost reduction and less attrition.
Some of the Key Tier-2 GCC Hubs
The number of GCCs has increased to more than 170, which are now found in 18 Tier 2 cities. This means that the GCC footprint of Tier 2 cities will grow from 5% of the national GCC footprint in 2019 to 7% in 2025. The YoY growth of hiring in Tier 2 cities has reached 21%, which is 1.75 times the growth of metropolitan areas’ 12% thus indicating that global companies are purposely spreading their locations away from cities.
The Major Tier 2 cities, where the GCCs are located
- Coimbatore, Tamil Nadu: The city is known for its 25+ GCCs, which have the highest CAGR of 21% in GCC setups over the past five years, almost reaching the gold in some Tier 1 markets. The union of the city’s manufacturing base and the engineering experts from top colleges makes Coimbatore the best place for manufacturing-type work like ERP, industrial automation, and supply chain analytics.
- Kochi, Kerala: A City with more than 20 GCCs working in IT/ITeS for global firms like Cognizant, EY, IBM, Allianz, and Nissan Digital. The fintech and digital engineering-focused city attracts analytics, cloud engineering, and platform reliability.
- Indore, Madhya Pradesh: Hub of GCCs in Central India that is growing the fastest in India and is taking the talent across Madhya Pradesh, Rajasthan, Gujarat, and Uttar Pradesh. Indore’s proximity to the government, high-quality living that is 10-15 percentage points lower than metros in terms of attrition rates, and connectivity make the city very attractive.
- Ahmedabad, Gujarat: The state government’s bold GCC policy (2025-2030) aims to lure over 250 new GCCs and generate 50,000+ jobs by 2030, thanks to the subsidies on capital expenditure and employment that are the main drivers of the labor capital market.
Also read: India’s New Job Shift: Why Tier-2 Cities Are Creating More Jobs Than Metros?
Direct Employment Generation
The year 2025 saw the addition of thousands of GCC jobs through Tier 2 cities. Coimbatore, which is the leader among Tier 2 cities in terms of GCC setups, has a 21% CAGR that translates into 2,000-3,000 new professional positions every year, each representing a family with increased income and thus housing demand.
Housing Absorption Reaction
The leading 15 Tier 2 cities had sales of 39,201 units in Q3 2025, down by 4% YoY. However, there were some areas with growth:
| Cities | Sector | Trend |
| Lucknow | IT & manufacturing | +25% YoY |
| Coimbatore | Manufacturing | +21% YoY |
| Gandhinagar | Fintech, Semiconductors | +18% YoY |
The value of sales in the Tier 2 cities reached ₹40,443 crore in Q1 2025, which is a 6% increase compared to the previous year.
Migration of Young Professionals
Early talent 42% of the GCC workforce, earning ₹15-20 lakhs. This is the main reason for the increase in first-time homebuyers. They might not have significant savings, but their stable multi-year contracts with the GCC and great job security make them appealing to lenders, thus speeding up housing absorption at an early stage of their careers.
Also read: Top 7 Indian States with the Most Balanced Rural and Urban Development in 2026
Forward Projection: 2026-2030
The Tier 2 GCC-housing correlation is expected to remain in the spotlight as a result of industry projections until 2030
- GCC labor force expansion: Tier 2 cities’ aim for 200,000+ net new GCC jobs (21% annual growth sustainability) would bring approximately 300,000 employed professionals, along with their housing demand profiles by 2030.
- Office-to-residential spillover: It is estimated that 35-40% of the total office demand in 2025-2026 will be covered by GCC office leasing. The significant office development in Tier 2 cities not only brings about office but also residential influx close by due to metro extensions, improved connectivity, and mixed-use campuses.
- Salary trend: GCC pay hikes at 9.8-10.2% per annum (as compared to IT services 5-6%) will gradually uplift the standard of living, making it possible to shift from 2BHK to 3BHK and even premium segments by 2028-2030.
- Policy Stability: The state GCC policies have now become multi-year commitment horizons (2025-2030 frames), which not only signals long-term stability but also encourages professionals to commit to home purchases over the less stable renting of housing.
Conclusion
GCCs are creating employment in the Tier 2 cities at a rate of 21% per annum, which is way faster than the metros; nevertheless, the cities still possess the lion’s share. The salaries of these mid-income GCCs in the Tier 2 cities are in line with the prices of the houses in the lower Tier 2 cities, hence every recruitment drive leads to a corresponding rise in demand for mid-income housing of ₹30 to 80 lakh.
Written by Yatheendra N
