According to a report by CBRE, total number of operational Global Capability Centres (GCCs) tend to increase 20% by 2025 in India
Global Capability Centres (GCCs) in India are predicted to increase by more than 20% from 1,580 to 1,900 by 2025, stated a report released by real estate consultancy CBRE. It stated that GCC countries would probably lease 60–62 Million Square Feet (MSF) of office space in India during 2023-25.
CBRE further stated in the "India's Global Capability Centres-charting a New Technology Era" report that real estate, talent availability and cost, and the enabling legislative environment have made India the most sought-after location for GCCs. Global GCCs are consequently renting bigger office locations in the nation. North American firms continue to be the mainstay of GCCs in India.
The survey also predicted a robust pipeline of new initiatives in emerging micro markets for the top six cities—Delhi, Bangalore, Mumbai, Chennai, Pune, and Hyderabad—between 2023-25. Quality investment-grade office supplies will be the focus of the upcoming developments, providing GCCs with ample opportunity to upgrade and scale as they grow.
According to Mr. Anshuman Magazine, Chairman and Chief Executive Officer (CEO) of CBRE, global companies were pushed to review their business offers in order to boost levels of digitisation after the pandemic. An increasing number of multinational corporations investigated multi-functional GCCs in India in an effort to guarantee business agility, boost productivity, and strengthen their organisations' resilience. Smaller and mid-sized businesses gradually began to venture into Indian waters in an effort to improve their offers.
He further noted that companies are also evaluating tier-II cities to set up their GCCs and expand their operations, encouraged by the availability of talent due to the reverse migration observed during the pandemic. The increasing focus on infrastructure development in tier-II cities has increased the advantage of non-metropolitan areas, even if cost arbitrage in these cities has always benefited growing centres. In the first six months of 2023, office leasing by GCCs stood at 9.8 MSF. Three cities, Bangalore, Chennai, and Hyderabad, cumulatively accounted for over 77% of the total. Bangalore alone accounted for about 39% of the market share.
The report also predicted that by 2025, GCC travellers will mainly want to go to Delhi's Noida Motorway. North Bangalore will be the next hotspot in Bangalore, after Navi Mumbai.
OMR Zone 2 in Chennai is anticipated to have the greatest demand. The areas having the most demand for GCC offices in Hyderabad and Pune are PBD North-East and IT Corridor 2, respectively.
According to Mr. Ram Chandnani, Managing Director of CBRE, there will be incremental growth over the next two to three years, and it will continue to be across the top metro cities. With workplaces designed to accommodate a multigenerational workforce, the health and well-being of workers will continue to be of utmost importance for GCCs.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.