BENGALURU: The increasing demand for office space by global capability centres (GCCs) underscores India’s pivotal role as a hub for advanced technology development. As more MNCs recognise the value of setting up their technology centres in India, the country is poised to play an even greater role in shaping the global GCC landscape.
The absorption of office space by GCCs across India is projected to reach 26.1 million square feet by 2027, up from the current 21.8 million square feet, according to a report by real estate consultancy Knight Frank. The report attributes this growth to several factors, including a supportive ecosystem with political stability, a robust consumption-based economy, and a stringent regulatory framework for the financial sector. JLL India, another real estate consultancy firm, said that India is home to over 1,800 GCCs, catering to more than 1,400 unique global corporations, with an addition of over 100 new centres since 2022.
JLL’s report also highlighted that GCCs currently occupy more than 240 million square feet of Grade A office space across the country’s top seven cities, with Bengaluru leading the pack, accounting for about 42% of the total absorption. “In the last 18 months alone, GCCs leased an astounding 35.2 million square feet of office space. Bengaluru, Hyderabad, and Chennai, captured a significant three-quarters of this leasing activity, underscoring the region’s appeal with its combination of world-class infrastructure, deep talent pools, and supportive business ecosystems,” said Samantak Das, chief economist and head of research at JLL India’s Real Estate Intelligence Service.
The report also said GCCs account for approximately 50% of active, ongoing space requirements across the top seven cities, signalling continued expansion and investment in the country. As GCCs evolve from cost-saving centres to transformation hubs, India’s role in driving global business innovation and digital transformation is set to grow even further.
Knight Frank’s analysis of flex space deals across India’s eight major cities from 2018 to the third quarter of 2024 shows that Bengaluru consistently leads in all deal size categories. The city topped the list with 150 deals for small-sized deals under 40,000 square feet, followed by the NCR with 96 deals.
