Synopsis
A recent report by Anarock highlights that GCCs are responsible for 37% of office space leased in India's top 7 cities. As demand grows, GCCs are also expected to expand their presence into Tier 2 and 3 cities, driven by India's economic growth and government support.Key Takeaways
- GCCs account for 37% of India’s office space leasing.
- Bengaluru leads with 24 million square feet leased.
- Leasing by GCCs increased by 16% from 2023 to 2024.
- Incremental hiring may lead to an additional 200-225 million square feet demand by 2030.
- Chennai and Pune saw significant annual increases in leasing.
New Delhi, Feb 24 (NationPress) The increasing footprint of GCCs (global capability centres) belonging to multinational firms in India’s top 7 cities now represents a substantial 37% of the country's office space market, as per a report issued by real estate advisory Anarock on Monday.
"While the leading 7 Indian cities are presently attractive to these companies for leasing, the government's recent initiatives in the Union Budget 2025-26 to assist states in attracting more GCCs is expected to boost demand in Tier 2 and Tier 3 cities as well," the report indicates.
Anarock's research data on Indian office markets reveals that the top 7 cities recorded a total leasing of over 141.43 million square feet over the past two years – 2023 and 2024. Out of this, GCCs leased approximately 52.88 million square feet of office space, accounting for more than 37% of the total.
Bengaluru maintained its lead with around 24 million square feet of gross office space leased during the last two years, which constitutes a significant 46% overall share.
Hyderabad ranked second, with more than 10.06 million square feet of gross office space leased by GCCs, making up nearly 19% of the total share among the top 7 cities, according to the report.
The gross leasing by GCCs in 2023 across the leading 7 cities was about 24.5 million square feet, which rose to 28.38 million square feet in 2024, marking a 16% annual increase, the report states.
It is expected that incremental hiring in GCCs will generate additional demand of 200-225 million square feet by 2030.
City-specific data shows that in Chennai, GCCs leased nearly 3.29 million square feet in 2024, reflecting a 64% year-on-year increase. In Pune, GCCs leased approximately 3.18 million square feet during the year, showing a 52% annual rise.
In NCR, about 2.59 million square feet were leased in 2024, which is a 4% increase year-on-year, whereas in Mumbai, the leasing in 2024 reached 1.62 million square feet, indicating a 35% annual increase. In contrast, Kolkata saw only 0.15 million square feet leased during the year.
Peush Jain, MD of Commercial Leasing at Anarock, stated: "India’s escalating economic stature over the last two to three years has enhanced the confidence of GCCs and drawn them to key markets such as Bengaluru, Mumbai, Hyderabad, Pune, and Chennai. Notably, unlike the pre-Covid era (when most of these GCCs predominantly focused on the IT/ITeS and BFSI sectors), their interests are now diversifying into other sectors like engineering and manufacturing.
This shift is attributed to various factors, including India’s rise as a global economic hub, the government’s persistent emphasis on the ‘Make in India’ initiative, improved infrastructure, and enhanced connectivity through airports, highways, and railways, he added.
