GCC Leasing Reaches 31% of Total Market, Bengaluru Dominates

Mumbai, Feb 14 (NationPress) Global Capability Centres (GCCs) have secured a total of 22.5 million square feet (mn sq ft) in 2024, representing 31 percent of the overall leasing activity, as stated in the latest office market report by real estate consultancy Knight Frank India.

Out of this, 50 significant transactions (each exceeding 100,000 sq ft) accounted for 12.1 mn sq ft, while 56 medium-sized deals (ranging from 50,000 to 100,000 sq ft) contributed 4.4 mn sq ft. Additionally, 223 smaller transactions (under 50,000 sq ft) made up 5.5 mn sq ft of leased space, as per the report.

Among various cities, Bengaluru led with the highest total GCC leasing of 9.33 mn sq ft, with 66 percent (or 6.18 mn sq ft) originating from large deals, reflecting a remarkable 191 percent increase in absorption. Following closely was Hyderabad, with total GCC transactions amounting to 5.06 mn sq ft, where 67 percent (or 3.41 mn sq ft) were in the large office space category.

Chennai, with 89 deals, and NCR with 53, also displayed robust uptake by GCCs in 2024.

Bengaluru stood out as the leading market, capturing 42 percent of total GCC leasing volumes with 100 lease transactions—the highest among all cities.

Across the eight major cities, GCCs executed 329 leasing deals in 2024. Bengaluru led with 100 transactions, followed by Chennai with 89 deals. Both cities reported the highest number of leases in the sub-50,000 sq ft category, with Chennai recording 73 deals—the most among all cities—while Bengaluru followed with 66 deals.

In the medium-sized office segment, Hyderabad led with 15 deals, closely followed by Bengaluru with 14 deals.

In the large office sector (100,000+ sq ft), Bengaluru again led with 20 deals, solidifying its reputation as a favored destination for GCCs. Although the three southern cities—Bengaluru, Chennai, and Hyderabad—remained the most appealing for GCCs, the NCR region also recorded 53 GCC deals, with the majority (38 transactions) in the smaller office category.

Viral Desai, Senior Executive Director at Retail Agency Knight Frank India, commented, “India presents the most attractive ecosystem for the growth of Global Capability Centers (GCCs). A well-educated talent pool, alongside progressive government policies, facilitates a smooth setup and effective operations.”

“These benefits are further enhanced by India's outstanding commercial real estate landscape. The country offers a significant supply of Grade A office spaces with robust ownership structures comparable to leading global markets. Additionally, while quality remains exceptional, commercial rents have been stable in USD terms for over a decade—making India an extremely competitive and cost-effective option for GCC expansion,” he added.