Global Capability Centers (GCCs) are driving a surge in India’s office space demand, with 53 million square feet leased since 2022. As 67% of GCCs plan to expand further, developers are focused on creating premium office spaces, particularly in regions like Delhi-NCR and Gurugram, to meet this growing demand.
India’s commercial real estate sector is experiencing a significant boost, primarily driven by the expansion of Global Capability Centers (GCCs). A recent report by CBRE and Zyoin reveals that leading global companies have leased nearly 53 million square feet of office space across key Indian cities like Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai since 2022. This growth is attributed to India’s skilled workforce, cost-effective environment, and favourable business climate.
According to CBRE’s 2024 India Office Occupier survey, approximately 67% of GCCs plan to increase their office portfolios by at least 10% within the next two years. This projected growth highlights a sustained demand for office spaces, encouraging developers to expand their offerings to meet future needs. Nisheeth Thukral, Head of Leasing at Ambience Group, remarked, “Global companies leasing office space in India to set up GCCs will turn out to be the prime drivers for the country’s commercial real estate.”
The report emphasises the potential of the Delhi-NCR region, where demand for Grade A office spaces is robust. Sanchit Bhutani, Managing Director of Group 108, noted that the area around the Noida Expressway holds high potential, driven by the demand for office spaces and retail outlets. Significant infrastructure developments like the Noida International Airport have further bolstered commercial real estate growth, encouraging the development of specialised and premium office spaces.
The surge in demand for office spaces from GCCs is wider than Delhi-NCR. Harinder Singh Hora, Founder Chairman of Reach Group, pointed out the optimistic outlook for Gurugram, where infrastructure growth is leading to higher rental values and increased leasing activity by GCCs. This momentum is expected to drive the growth of Grade A retail and office spaces in the region.
Salil Kumar, Director of Marketing and Business Management at CRC Group, emphasised the strong demand for Grade A office spaces, driving rental prices in prime locations and catalysing new developments. He stated, “As global companies secure large office spaces for their GCCs in India, we look forward to sustained demand for commercial spaces, encouraging developers to develop and deliver future-ready office spaces.”
As the market continues to evolve, India’s commercial real estate sector is set to experience sustained growth, reinforcing the country’s status as a strategic destination for global companies. This dynamic environment not only enhances the vibrancy of India’s commercial real estate market but also solidifies its competitiveness on the global stage. Developers are increasingly focused on creating specialised and premium office spaces, catering to the unique needs of various industries and ensuring that India remains a top choice for GCCs.
