CBRE announced the findings of its report ‘India’s Global Capability Centres-charting a new technology era’. The report elaborates on the growth of Global Capability Centres (GCCs) in India, leasing preferences, and key drivers for expansion.
As per the report, GCCs are likely to lease office space of around 60-62 mn. sq. ft. of space between 2023-25. Sectors including technology, BFSI and engineering & manufacturing will lead leasing activity, while sectors such as life sciences, automobiles, and aviation will also expand their GCC operations in India. Cementing the long-term intent of global corporates in India, GCCs are now leasing larger offices with the potential to scale up in the future. North American firms continue to be the mainstay of GCCs in India. Availability and cost of talent, real estate, and supporting regulatory framework aid GCCs expansion in India.
By 2025, it is estimated that there will be ~1900 total operational GCCs in the country from existing ~1580. During this period, GCC leasing activity is expected to account for 35-40% of the overall office leasing. Globally, among the top emerging GCC hubs, including Brazil, Chile, China, Czech Republic, Hungary, Philippines, and Poland, India has the best cost and talent attractiveness score, which makes the country the most sought-after destination for GCCs.
The report also states that from 2023-25, the top six cities, including Delhi, Bangalore, Mumbai, Chennai, Pune and Hyderabad, are likely to witness a strong pipeline of new developments in emerging micro markets, creating new hubs for activity. The upcoming developments would be geared towards quality investment-grade office supply, giving GCCs ample scope to upgrade and scale as they expand.
| City | Top micro markets in |
| upcoming supply (2023-2025F) | |
| Delhi-NCR | Noida Expressway; |
| Extended Golf Course Road | |
| Mumbai | Navi Mumbai; |
| Extended Business District | |
| Bangalore | North Bangalore ;Outer Ring Road |
| Chennai | OMR Zone 2; |
| Mount Poonamallee Road | |
| Hyderabad | IT Corridor 2; |
| Extended IT Corridor | |
| Pune | PBD North-East;SBD North-West |
During Jan-Jun ’23, GCCs continued aggressive expansion and accounted for a 38% share in overall office space take-up across 6 cities. Office leasing by GCCs in Jan-Jun ’23 stood at 9.8 mn. sq. ft. Bangalore, Chennai, and Hyderabad – cumulatively accounted for over 77% of the total GCC leasing during Jan-Jun’23. Bangalore continues to account for the largest share in leasing over the six months (Jan’23-Jun’23), while Chennai has witnessed about one-fourth share led by ready institutional supply that entered the market in 2023.
Hyderabad remains in the top three cities driving space absorption by GCCs during Jan-Jun’23. Leasing by GCCs during Jan-Jun ’23 in the city stood at 1.4 mn. sq. ft. Between Jan- Dec’22 and Jan-Jun’23, key micro markets for GCC leasing were IT Corridor II and Extended IT Corridor. GCC leasing quantum between Jan-Dec’22 and Jan-Jun’23 is 6 mn sq. ft. with a 35% share dominated by the tech sector companies. The growth of GCCs in the city comes in the backdrop of ample talent availability and an improving standard of living, comparatively lower costs, amidst proactive government initiatives. The city has witnessed GCC activity from across sectors such as technology, life sciences and consulting services.
