India has solidified its position as a global powerhouse for Global Capability Centers (GCCs), with these centres accounting for nearly half of the country’s high-quality office space inventory between Q1 2023 and Q2 2024. According to Cushman & Wakefield, 124 new GCC deals were signed during this period, with companies establishing greenfield capabilities or R&D hubs. Notably, nearly two-thirds of these firms originated from the United States, underscoring India’s growing importance for global corporations.

Driving Factors Behind India’s Appeal

India’s cost-effective and skilled talent pool has been a key driver behind this growth. “India has, over the years, developed a competent and hardworking talent pool that is available in abundance and at lower costs compared to developed economies,” said Sriram Khattar, managing director of DLF Rental Business. Additionally, the availability of world-class Grade A++ office solutions has made India an attractive destination for multinational companies seeking both efficiency and quality.

The shift isn’t just about cost-saving; it represents a broader transformation in India’s role in the global business ecosystem. Alok Aggarwal, MD and CEO of Brookfield Properties India highlighted that India is evolving from a back-office hub to a strategic innovation centre. “India has emerged as a global leader in the evolution of GCCs,” he said, with over 15 million square feet of Brookfield’s portfolio now dedicated to GCCs.

Key Trends and Market Dynamics

GCCs have become a vital segment of India’s commercial real estate landscape. Between Q1 2023 and Q2 2024, the total office space leasing volume by GCC companies reached an impressive 28.8 million square feet, with new GCCs contributing 30% of this demand. Notably, smaller and mid-sized firms also played a significant role, with 44% of the new GCC deals coming from companies with annual revenues under USD 1 billion.

Anshul Jain, Chief Executive of Cushman & Wakefield for India, Southeast Asia, and APAC, emphasised India’s strategic role in driving global growth. “India is helping multinational firms drive growth and deliver on strategic goals by emerging as a global innovation centre and R&D hub,” he stated.

The Road Ahead

The demand for office spaces from GCCs shows no signs of slowing. As companies increasingly rely on India for digital transformation and business excellence, the need for state-of-the-art infrastructure and talent is expected to rise.

India’s position as a leader in the GCC market highlights its ability to innovate and provide solutions for global businesses, strengthening its reputation as an indispensable partner for multinational firms worldwide.