Office leasing by Global Capability Centres (GCCs) Chennai likely to touch 3.2 million sq. ft. by FY25: CBRE

Chennai, India's third most active market for Global Capability Centres (GCCs), is set to more than double its office space leased to GCCs in the last two years, with American companies leading the demand. By FY25, the city is projected to absorb around 3 to 3.2 million square feet of office space, according to CBRE. Chennai hosts approximately 250 GCCs, accounting for 11% of India's GCC workforce, with a talent pool of over 150,000 professionals. This is expected to expand 1.4 times by FY30, reaching 320,000 to 370,000 professionals. Initiatives like the Tamil Nadu Startup and Innovation Policy 2023 and the R&D Policy 2022 further strengthen Chennai's appeal for global enterprises. Key GCCs such as AstraZeneca, Adidas, and Caterpillar have recently set up operations in the city.

Chennai has emerged as a key hub for GCCs due to its strategic location, strong talent pool, and supportive government policies. The city is expected to add 12-13 million square feet of premium office space between FY25 and FY26, further fuelling the growing demand. It is currently the fifth-largest office market in India, with over 90 million square feet of office stock, projected to surpass 100 million square feet by FY26. Sectors like engineering, banking, financial services, insurance, and technology drive demand. US companies accounted for 67% of GCC setups between FY22 and Q1 FY24. Key Chennai micro-markets like OMR Zone 1, MPH Road, and PT Road contributed 92% of overall GCC leasing activity. Additionally, cities such as Coimbatore, Madurai, and Tiruchirappalli are emerging as key hubs for manufacturing investments, contributing to the state’s goal of achieving a US$ 1 trillion (Rs. 84,38,000 crore) economy by FY30.

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