Indian Economy News

Foreign firms looking to set up GCCs in India may need 45-50mn sq ft office space by 2025: Colliers

  • IBEF
  • February 22, 2024

Global Capability Centers (GCCs) are set to lease 45–50 million sq. ft. of office space over the next two years, representing 40% of total office demand in the top 6 cities, driven by positive business sentiments and economic outlook. Major companies like Amazon, Bank of America, Wells Fargo, Qualcomm, and Google have established significant GCC centers in India. The country's office market outlook remains optimistic, with growing interest from various sectors diversifying the GCC landscape. Factors like skilled workforce availability, cost advantages, and an improving regulatory environment reinforce India's appeal as a preferred GCC destination. Flexible workspace adoption is rising, with GCCs utilizing around 5–10% of flex seats. Southern cities like Bengaluru, Hyderabad, and Chennai are key GCC hubs, with Bengaluru and Hyderabad leading in leasing activity. Chennai saw a notable surge in 2023, while Pune and Mumbai also experienced growth. India hosts close to 1,900 GCCs and is a rapidly growing market for GCCs globally, with suburban and near-dollar micro markets playing a significant role in space uptake.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.