India's office space leasing market is led by MNCs and GCCs and is expected to reach 62 million square feet by 2025: CBRE
Global Capability Centres (GCC) and offshore units of multinational corporations account for a large chunk of office space leased in India. As per the data released by CBRE, the total space under lease for this type of infrastructure is expected to attain 60-62 million square feet between 2023 and 2025.
According to the publication, there will be 1,900 GCCs in the nation by 2025, up from an expected 1,580 at that time. By 2030, there will probably be three times as many GCCs as there are currently, employing over three million people, compared to the current 1.3 million.
As per Mr. Ramesh Nair, Chief Executive Officer (CEO) of Mindspace Business Parks REIT, “Currently, GCCs occupy about 200 million square feet, and we anticipate this to expand to 280-300 million in the next 3-4 years, creating a demand surge of 80-100 million square feet. Still, 80% of the global 2000 firms do not have a GCC in India, which is the next big opportunity for the country.”
According to the report, the GCCs are estimated to account for 35-40% of the overall office leasing.
According to Mr. Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East, and Africa at CRE, several global firms have chosen to locate their GCCs in India in order to promote business agility, increase productivity, and advance digitalization. This covers large, mid-sized, and small firms.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.