Global Capability Centres (GCCs) are growing rapidly in the country. Leasing of these in 2023-24 increased by 17% compared to 2022-23. In 2022-23, there were 19.2 million square feet of GCC leases, which increased to 22.5 million square feet in 2023-24. Among these, engineering and manufacturing companies have occupied a significant share, followed by automotive companies.
In the period from January to March 2024, the occupancy of GCCs in leased office spaces across the country is noteworthy at 29%. Looking at cities, Bengaluru leads with over 60% occupancy, Hyderabad follows in the second position with 26% occupancy. Delhi with 9%, Mumbai with 4%, and Pune with 1% occupancy follow. GCCs have played crucial roles in transforming the Indian office leasing landscape. From 30% to 35% of the total office leasing from 2017 to 2019, it has grown to 1250 GCCs. Between 2020 and 2022, with 1580 GCCs, the share of office leasing increased from 38% to 43%. Consequently, India has emerged as a frontrunner in GCC growth.
By 2025, it is projected that 1900 GCCs will be operational. Major companies in sectors like banking, financial services, insurance, technology, engineering, and manufacturing are looking to expand their presence in India through GCCs. With rising demand for premium office spaces, GCCs are receiving significant attention. GCCs play a crucial role in boosting India’s prowess in digital technology and other sectors, contributing significantly to its growth. “There is an opportunity for more advanced GCCs to come to India,” said Anshuman Magazine, Chairman, and CEO of CBRE India.
“India’s global capability centres are evolving. The demand for premium office spaces is increasing due to modern amenities. Companies are prioritising investments and seeking higher-quality assets. With attractive environments and developmental approaches, India is becoming a prime destination for innovation and talent,” said Ram Chandnani, Advisory & Transaction Services Managing Director at Cushman & Wakefield India.
