Global Capability Centers (GCCs) have significantly driven India’s office leasing market from 2022 through the first half of 2024.
As reported by the Money Control, these centers leased a total of 53 million square feet of office space across major cities such as Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai. This article examines the trends, key players, and future prospects in GCC office leasing in India.
Bengaluru has emerged as the leading city for GCC office leasing, capturing 40% of the market share. From 2022 to the first half of 2024, GCCs leased around 21.2 million square feet in the city. Bengaluru’s success is due to its strong technology ecosystem, vibrant startup scene, and the largest technology workforce in India, totaling two million.
Hyderabad follows Bengaluru, holding 21% of the GCC leasing market with approximately 11.13 million square feet leased in the same period. The city’s appeal lies in its favorable business environment, growing tech industry, and supportive government policies.
Chennai and Pune have also seen significant leasing activity. GCCs leased about 7.42 million square feet in Chennai and 6.36 million square feet in Pune. Both cities offer skilled talent, conducive business conditions, and expanding infrastructure.
Delhi-NCR and Mumbai, while behind the top three cities, have shown consistent growth. Delhi-NCR leased around 4.77 million square feet, and Mumbai leased about 2.12 million square feet. Both cities are key financial and commercial hubs, attracting BFSI sector investments.
Sector-Specific Insights
In the first half of 2024, GCCs accounted for 37% of the total office leasing activity in India. The Banking, Financial Services, and Insurance (BFSI) sector increased its share to 22%, driven by major leases from global banking and insurance firms in Mumbai, Bengaluru, and Pune.
Technology companies also played a significant role, leasing approximately 15 million square feet over the past two and a half years. Historically, tech and BFSI firms have been the primary occupants of GCC office spaces.
Anshuman Magazine, Chairman and CEO of CBRE India, emphasized that GCCs are at the forefront of digital transformation and product excellence for global firms. India’s large pool of tech and non-tech talent is becoming increasingly important for global operations. The future looks promising, with life sciences, automotive, and aerospace sectors expanding their GCC presence in India.
India’s strategic roadmap for 2024 and beyond positions it to lead the next wave of globalization. As GCCs continue to grow and diversify, India’s role as a global hub for these centers is set to expand.
The leasing activity of Global Capability Centers in India from 2022 to the first half of 2024 highlights the country’s significant role in the global office space market. With Bengaluru leading the way, followed by Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai, India’s major cities are attracting considerable GCC investments. The diverse sector contributions and robust future prospects underline India’s importance in the global GCC landscape.