India has become a top destination for Global Capability Centers (GCCs), leasing 53 million square feet of office space since 2022. With 67% of GCCs planning further expansion, India’s skilled workforce, cost-effectiveness, and supportive government policies continue to attract global firms, boosting the commercial real estate sector.
India has become a leading hub for Global Capability Centers (GCCs), with 53 million square feet of office space leased since 2022. A report by CBRE and Zyoin attributes this growth to India’s skilled workforce, cost advantages, and government support. Major cities like Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai have become prime locations for these global firms.
The future looks even more promising, with 67% of GCCs planning to expand their office spaces by at least 10% over the next two years. This anticipated expansion underscores the growing demand for commercial real estate in India. Developers are expected to seize this opportunity by creating office spaces that cater specifically to the needs of GCCs, potentially leading to innovations in building design and infrastructure.
In the first half of 2024, GCC leasing accounted for 37% of total office space demand, highlighting their growing dominance in India’s real estate market. This surge has pressured developers to offer more innovative and tailored workspaces that meet modern business needs.
The Indian government has also played a crucial role in boosting GCC growth by implementing favourable policies. Tax incentives, streamlined regulations, and a push to improve the ease of business have attracted global companies to set up or expand operations in India. Combined with India’s large English-speaking workforce, these factors make the country a competitive alternative for firms looking to cut costs while maintaining high-quality operations.
As the demand for office space grows, India’s commercial real estate market is evolving. Developers focus on creating specialised office spaces catering to GCC requirements, further stimulating job creation and local economic growth.
In conclusion, the rise of GCCs in India signals a bright future for the country’s commercial real estate sector. The continued expansion of these centres highlights India’s economic potential and positions the country as a key player on the global business stage. The growing engagement between global firms and the Indian market will likely drive further growth in the real estate sector, solidifying India’s status as a strategic hub for international business.
