Global Capability Centres (GCCs) are increasingly becoming the backbone of India’s commercial real estate sector.
According to a recent joint report by CBRE and Zyoin, these centers have dramatically expanded their operations across India, driven by a combination of skilled talent, cost advantages, and a favorable business environment. Since 2022, global companies have leased nearly 53 million square feet of office space across key cities like Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai to establish and expand their GCCs.
This surge in demand is a testament to the pivotal role that India plays in the global strategies of multinational corporations. The CBRE’s 2024 India Office Occupier Survey further supports this trend, revealing that approximately 67% of GCCs plan to increase their office portfolios by at least 10% within the next two years. This trend signals a robust growth trajectory for India’s commercial real estate sector.
The Transformation of Gurugram and Delhi-NCR
In the Delhi-NCR region, particularly around the Noida Expressway and Gurugram, this demand is reshaping the commercial landscape. Harinder Singh Hora, Founder Chairman, Reach Group, said, “Gurugram’s office market is undergoing a transformative phase, driven by a perfect storm of factors. Robust infrastructure development, coupled with a thriving startup ecosystem and the increasing adoption of advanced technologies, is attracting global corporations.
As the city evolves into a digital hub, demand for innovative and sustainable workspace solutions is escalating. This dynamic environment is propelling Gurugram towards becoming a leading commercial center in India and a global business destination.”
Adding to this, Sanchit Bhutani, Managing Director of Group 108, emphasizes the potential of Delhi-NCR, especially around the Noida Expressway. “The report showcases a positive viewpoint for Delhi-NCR’s commercial space market in India. Notably, the area around the Noida Expressway indicates higher potential, fueled by the demand for office spaces and retail outlets.
Significant infrastructure developments like the Noida International Airport have further strengthened commercial realty growth. As global businesses expand their presence in the region, this trend encourages developers to create more specialized and premium office spaces, catering to the unique needs of various industries and enhancing the overall vibrancy of India’s commercial real estate landscape.”
The Demand for Grade A Office Spaces
Salil Kumar, Director of Marketing and Business Management at CRC Group, points out that the surge in leasing by GCCs is particularly strong for Grade A office spaces.
“The heightened demand for Grade A office spaces will not only drive rental prices in prime locations in Delhi-NCR but also catalyze new developments, further strengthening the commercial real estate sector. As global companies secure large office spaces for their GCCs in India, we anticipate sustained demand for commercial spaces, encouraging developers to develop and deliver future-ready office spaces.”
The demand for high-quality, well-located office spaces has indeed been a key driver for the growth of GCCs in India. The report highlights that leasing for GCCs accounted for 37% of the total leasing during the first half of 2024, underscoring the significant impact of this sector on the overall commercial real estate market.
NCR’s Strategic Advantage
Nisheeth Thukral, Head of Leasing at Ambience Group, notes that the National Capital Region (NCR) is also gaining traction as a preferred destination for global corporations establishing GCCs. “While Bangalore remains the leading city, the NCR has experienced significant interest from international corporations.
“The demand is particularly strong for Grade A office spaces, and as a vital participant in this flourishing market, the NCR presents substantial opportunities. Ambience Group is actively developing upscale mixed-use commercial projects adjacent to the Noida Expressway to leverage these prospects.”
Sustained Growth and Future Prospects
As the market continues to evolve, India’s commercial real estate sector is poised for sustained growth. The ongoing expansion of GCCs, coupled with significant infrastructure developments, positions India as a strategic hub for global companies. This dynamic environment not only enhances the vibrancy of the country’s commercial real estate market but also reinforces India’s status as a key player in the global business landscape.
For developers, this presents an exciting opportunity to innovate and create specialized, premium office spaces that cater to the diverse and evolving needs of global corporations. As India solidifies its position as a preferred destination for GCCs, the future of the commercial real estate sector looks promising, marked by growth, innovation, and global integration.