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As per CBRE South Asia Pvt. Ltd's report, between 2023-25, an estimated 60-62 million sq. ft. of office space is anticipated to be leased by Global Capability Centres (GCCs). This demand is primarily driven by technology, BFSI, and engineering & manufacturing sectors. Other sectors like life sciences, automobiles, and aviation are also slated for expansion within GCC operations in India. Notably, global corporations are now securing larger office spaces in India with scalability potential, signifying their long-term commitment. The report forecasts a rise in operational GCCs in India to approximately 1900 by 2025 from the current 1580. North American firms have a prominent presence in the Indian GCC landscape. Factors such as talent availability, real estate affordability, and supportive regulations strengthen GCC expansion in India. During this period, GCC leasing is poised to contribute 35-40% to the overall office leasing market. From Jan-Jun’23, GCCs accounted for a substantial 38% share in office space take-up across six cities, leasing 9.8 million sq. ft. Furthermore, Delhi, Bangalore, Mumbai, Chennai, Pune, and Hyderabad are expected to witness robust development in emerging micro markets between 2023-25. These developments aim to offer high-quality office spaces, facilitating GCC's expansion plans. India stands out globally among emerging GCC hubs, boasting superior cost and talent attractiveness scores, positioning it as the top choice for GCCs. Bangalore, Chennai, and Hyderabad collectively secured over 77% of total GCC leasing. Bangalore led the leasing, securing 3.8 million sq. ft., majorly driven by the technology sector (46%). The city's GCC landscape has diversified beyond technology and BFSI to include retail, aerospace, and life sciences. Chennai emerged as the second preferred GCC market after Bangalore during Jan-Jun’23, leasing 2.4 million sq. ft. Key micro markets for GCC leasing were OMR Zone I and PT Road, with engineering & manufacturing contributing 39%. The city's robust education hub offering STEM courses acts as a magnet for attracting new GCC entrants. Additionally, the Tamil Nadu R&D Policy 2022's incentives for entities like GCCs and R&D centres aim to draw global firms to the city. Hyderabad also maintained its position among the top three cities for GCC space absorption during Jan-Jun’23, leasing 1.4 million sq. ft. Key micro markets here were IT Corridor II and Extended IT Corridor, with the tech sector dominating 35% of the leasing. The city's GCC growth is supported by abundant talent availability, improving living standards, cost competitiveness, and proactive government initiatives across various sectors. Pune is another city witnessing emergence as a GCC hub, experiencing a 57% increase in space take-up in Jan-Jun '23 compared to the previous year, with the technology sector commanding a 42% share. The CBRE report underscores India's attractiveness for GCCs. The foreseeable future indicates closer collaborations between the maturing start-up industry and the GCC sector, fostering an innovative ecosystem for global centres. As companies increasingly consider tier-II cities due to talent availability and infrastructure improvements, the trajectory of GCCs in India promises an exciting phase of growth and diversification.
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