Global capability centres (GCCs) are set to dominate India’s office leasing market, accounting for 40-45% of the total office space leased in the current financial year, according to a recent report by CBRE, a leading property consultancy firm. By the end of 2025, the number of GCCs in India is projected to exceed 1,900, employing a talent pool of over 2 million professionals.

GCCs, which serve as offshore arms of multinational corporations, have been expanding rapidly in India. In the financial year 2023-24, GCCs leased an impressive 22.5 million square feet of office space, a 17% increase from the previous year. This growth is driven primarily by the engineering and manufacturing sectors, banking, financial services and insurance (BFSI), and the technology industry.

India’s robust talent pool, featuring an estimated 54 lakh technology experts, alongside a competitive cost framework for talent, rentals, and operational expenses, makes it an attractive destination for GCCs. The CBRE report emphasises that “the gradual upskilling of talent in existing as well as new roles and greater synergies between the private sector and educational institutions would continue to drive value creation in India,” according to Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East, and Africa at CBRE.

In the first quarter of 2024, GCCs leased 4.2 million square feet of office space, accounting for 29% of the total office leasing in India. The demand was notably high among engineering and manufacturing companies, with automobile firms contributing significantly.

GCCs have consistently played a significant role in India’s office leasing market. From 2017 to 2019, over 1,250 GCCs were responsible for 30-35% of the total office space leased, employing 1.3 million professionals. This trend continued to rise between 2020 and 2022, with 1,580 GCCs leasing 38-43% of total office space and employing 1.66 million workers.

The growing demand for premium office spaces with modern amenities is expected to drive further investment in high-quality office infrastructure. As GCCs continue to expand, India is poised to witness the development of more state-of-the-art office facilities, solidifying its position as a global hub for multinational corporations.

The rise of GCCs underscores India’s strategic importance in the global corporate landscape, where its blend of skilled talent and cost-efficiency offers unparalleled advantages. This burgeoning sector boosts the office leasing market and contributes significantly to the overall economic growth by creating job opportunities and fostering technological advancements.

As multinational companies continue to set up and expand their GCCs in India, the ripple effects on the office space market and the broader economy are expected to be profound, shaping the future of India’s real estate and corporate sectors.