Global Capability Centres to lease 60-62 million sq ft space in 2023-25 across top six cities: Report
NEW DELHI: Global Capability Centres (GCCs) are likely to lease office space of around 60-62 million sq ft between 2023-25 in top six cities i.e. Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune, according to a recent report by CBRE South Asia, a real estate consulting firm.
Sectors including technology, BFSI and engineering & manufacturing will lead leasing activity, while sectors such as life sciences, automobiles, and aviation will also expand their GCC operations in India.
GCCs are now leasing larger offices with the potential to scale up in the future. Availability and cost of talent, real estate, and supporting regulatory framework aid GCCs expansion in India.
By 2025, it is estimated that there will be about 1,900 total operational GCCs in the country from existing approximately 1,580. During this period, GCC leasing activity is expected to account for 35-40% of the overall office leasing.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “Companies are also evaluating tier-II cities to set up their GCCs and expand their operations, encouraged by availability of talent due to the reverse migration observed during the pandemic, led by remote and hybrid working models. While cost arbitrage in tier-II cities has always been an advantage towards emerging hubs, the recent thrust on infrastructure development in these cities has also added to advantage of non-metro cities.”
During Jan-Jun 2023, GCCs accounted for a 38% share in overall office space take-up across six cities. Office leasing by GCCs during the said period stood at 9.8 million sq ft.
Ram Chandnani, managing director (Advisory & Transactions Services), CBRE India, said, “Most GCCs in India continue to adopt a hybrid workstyle, they will likely continue to take up large office space to enhance collaboration and innovation – key performance enablers for most GCCs.”
Bengaluru, Chennai, and Hyderabad – cumulatively accounted for over 77% of the total GCC leasing during the period.
In Bengaluru, GCC leasing during Jan-Jun 2023 stood at 3.8 million sq. ft. Chennai emerged as the second preferred GCC market with 2.4 million sq ft space take- up.
Leasing by GCCs during Jan-Jun 2023 in Hyderabad stood at 1.4 million sq ft. Furthermore, Pune is emerging as a GCC hub, with a 57% increase in space take up in Jan-Jun 2023 compared to Jan-Jun 2022.
