GCCs Drive Unprecedented Office Leasing in India, Projected to Surpass 2,500 Units in 3-4 Years
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Synopsis
GCCs have driven office leasing in India to a record 77.2 million square feet in 2024, making up 36% of total demand. With projections to exceed 2,500 units in the next 3-4 years, Bengaluru is a critical player in this growth.
Key Takeaways
- GCCs led office leasing to 77.2 million sq ft in 2024.
- Bengaluru captures 47% of total GCC leasing demand.
- Hyderabad is a strong contender in the GCC space.
- Chennai shows significant growth in GCC interest.
- GCCs represent 40% of overall office leasing from 2016-2024.
Mumbai, Jan 29 (NationPress) Global capability centres (GCCs) have propelled an all-time high of 77.2 million square feet in office leasing across India, which represents 36 percent of the total demand for 2024, as per a recent report released on Wednesday.
In 2024, GCCs accounted for 28 million square feet of leased space, marking a historic increase of 15.2 percent and reinforcing their significant role in India’s office market.
Currently, there are over 1,950 GCC units in India, with expectations to surpass 2,500 within the next 3-4 years. The city of Bengaluru plays a crucial role in influencing the trajectory of India’s commercial real estate landscape, according to the JLL report.
The leasing activity across the top seven cities surged to an extraordinary 77.2 million square feet in 2024, reflecting a remarkable 22.6 percent increase compared to 63 million sq ft in 2023.
At the heart of this phenomenal growth are GCCs, a dynamic occupier group that continues to redefine India's commercial environment.
From 2016 to 2024, these global research and development and business transformation hubs have represented an impressive 40 percent of the total office leasing activity.
“This pattern not only highlights India’s ascending reputation as the 'office to the world' but also indicates a robust pathway for ongoing economic growth and innovation in the future,” stated Dr. Samantak Das, chief economist and head of research and REIS, India, JLL.
Bengaluru remains the top GCC hub in India, utilizing its well-established ecosystem to draw further investment and workforce expansion.
In 2024, the city secured 47 percent of the national GCC leasing demand, demonstrating its sustained leadership with consistently notable space uptake by GCCs.
On the other hand, Hyderabad has emerged as a strong competitor in the GCC sector, establishing itself as an appealing supplementary location for companies aiming for expansion.
GCCs, in pursuit of talent and innovation clusters, have shown considerable interest in Chennai, which has experienced the most robust growth over the past three years.
“The momentum remained strong in Delhi NCR and Pune as well. The expansion of the GCC footprint in key cities clearly signifies their profound understanding of India’s tech ecosystem and their capability to analyze essential factors concerning talent availability,” the report concluded.
