Indian Economy News

Office space leasing by GCCs up 17% to 22.5 mn sq. ft in 2023-24: Report

Office space leasing by global capability centres (GCCs) in India surged 17% YoY in the FY24. This increase is driven by sectors such as engineering, manufacturing, and financial services. Total leasing by GCCs reached 22.5 million sq. ft in FY24, up from 19.2 million sq. ft in FY23, as per real estate consultancy CBRE South Asia. In the January-March quarter alone, GCCs accounted for 29% of all office leasing in the country, holding 4.2 million sq. ft. Historically, they held a 30-35% share of total office leasing from 2017 to 2019 and accounted for 38-43% in 2022 with 1,580 operational centres. CBRE projects significant leasing by GCCs at 40-45 million square feet between 2024 and 2025. India is expected to have over 1,900 GCCs by 2025, employing a professional talent pool exceeding 2 million.

"The trajectory of global capability centres in India is poised for a significant shift, driven by a growing demand for premium office spaces that offer modern amenities and enriching experiences for the workforce," CBRE noted. Chairman and chief executive officer (India, South-East Asia, Middle East, and Africa), CBRE, Mr. Anshuman Magazine, highlighted India's strategic emphasis on digital technology and competitive costs for talent and rentals as key factors in GCCs’ growth. He emphasized that the gradual upskilling of talent in existing and new roles and greater synergies between the private sector and educational institutions will continue to drive value creation in India. As occupiers increasingly prioritize quality, they will seek office buildings that provide superior infrastructure and tailored, engaging workplace environments, leading to a heightened focus on investing in high-quality office spaces that meet the evolving needs of GCCs.

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