GCCs To Expand Its Operations by Leasing Larger Offices In Top Six Cities

Global Capability Centres (GCCs) are expected to lease 60-62 million sq ft of office space between 2023-25 in Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune, according to CBRE South Asia. 

Life sciences, cars, and aviation will increase their GCC operations in India, while technology, BFSI, and engineering & manufacturing will drive leasing activities. For future growth, GCCs are leasing larger offices. The cost and availability of manpower, real estate, and the enabling legal environment all aid in GCC's growth in India. 

About 1,900 GCCs will operate in the country by 2025, up from 1,580 now. This timeframe is likely to see 35-40% of office leasing from GCC. Cost arbitrage in tier-II cities has historically favoured growing hubs, but recent infrastructural development has also benefited non-metro areas. 

In Jan-Jun 2023, GCCs took up 38% of office space in six locations. GCCs leased 9.8 million sq ft of offices. Most GCCs in India have a hybrid workstyle and will likely continue to use large office space to improve cooperation and creativity, which boosts performance. 

Bengaluru, Chennai, and Hyderabad contributed 77% of GCC leasing. Bengaluru had 3.8 million sq. ft. of GCC leasing in Jan-Jun 2023. The second-most popular GCC market was Chennai with 2.4 million sq ft.