GCCs expected to absorb 26 million sq. ft office space in India by 2027

The rapid expansion of Global Capability Centres (GCCs) highlights India’s ability to streamline processes and drive business innovation. According to a Knight Frank India study, office space absorption by GCCs in major Indian property markets is projected to reach 26 million square feet by 2027, up from 19.69 million square feet in 2023. Transaction activity has surged by 16% since 2018, with GCCs finalizing 6,667 office leasing deals across 8 major cities over the past 5 years. This trend underscores the growing influence of GCCs in shaping demand for office spaces and their significant role in India’s evolving real estate and business landscape.

CMD of Knight Frank India, Mr. Shishir Baijal, noted that India’s rapid GDP growth and strong infrastructure continue to attract top-tier talent and corporate entities. India's GCCs have evolved from traditional roles to become key hubs of global strategy and local innovation. The IT and IT-enabled services (IT/ITeS) sector leads in GCC presence, followed by BFSI and consulting sectors, with Mumbai and Bengaluru hosting the highest concentrations in their respective sectors. Around 80% of India’s GCCs currently serve international clients. Projections indicate that by 2025, India will have over 1,900 GCCs employing approximately 2 million people, focusing on integrating advanced technologies and fostering sustainability. CEO of 3Ai, Mr. Sameer Dhanrajani, anticipates significant transformations by 2030, with GCCs becoming integral to global organizations and focusing on product and service innovation. Between 2018 and 2023, approximately 5,349 GCC-focused office deals were finalized for spaces under 50,000 square feet, 790 for between 50,000 and 100,000 square feet, and 528 for over 100,000 square feet. India remains a key GCC hub, alongside the US, Latin America, China, Europe, and the APAC region, valued for its ease of hiring talent and lower operational costs compared to global averages.

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