Prominent global firms have leased approximately 53 million square feet of office space since 2022 in cities such as Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai to establish their GCCs.
As the market continues to evolve, the commercial spaces in India are set to experience sustained growth, reinforcing the country’s status as a strategic destination for global companies. (Representative Image)
The latest joint report from CBRE and Zyoin emphasizes the substantial expansion of Global Capability Centres (GCCs) in India over the past few decades. This growth has been driven by a talented workforce, cost-effectiveness, and a favorable business environment. Consequently, prominent global firms have leased approximately 53 million square feet of office space since 2022 in cities such as Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai to establish their GCCs.
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The 2024 India Office Occupier survey conducted by CBRE indicates that around 67% of GCCs plan to expand their office portfolios by a minimum of 10% over the next two years. This increase in demand for office spaces from GCCs highlights a sustained growth trend in the commercial real estate sector, prompting developers to strategize and design additional office spaces to accommodate future requirements.
Commenting on this trend, Nisheeth Thukral, Head of Leasing, Ambience Group, said, “International corporations renting office space in India to establish Global Capability Centres (GCCs) are expected to be the main catalysts for the nation’s commercial real estate sector. While Bangalore remains the leading city, the National Capital Region (NCR) has also experienced significant interest. There is a notable demand, especially for Grade A office spaces. As a vital participant in this flourishing market, the NCR presents substantial opportunities, with firms such as Ambience Group intending to develop upscale mixed-use commercial projects adjacent to the Noida Expressway to leverage these prospects.”
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Sanchit Bhutani, Managing Director, Group 108, said, “The report showcases a positive viewpoint for Delhi-NCR’s commercial space market in India. Notably, the area around the Noida Expressway indicates a higher potential, fueled by the demand for office spaces and retail outlets. Further, significant infrastructure developments like the Noida International Airport have strengthened commercial realty growth. As global businesses expand their presence in the region, the trend encourages developers to create more specialized and premium office spaces, catering to the unique needs of various industries and enhancing the overall vibrancy of India’s commercial real estate landscape.”
Moreover, the availability and cost of quality real estate have emerged as one of the prime growth factors for GCCs in India. The report also indicated that the leasing for GCCs accounted for 37% of the total leasing during H1 of 2024.
Harinder Singh Hora, Founder Chairman, Reach Group, said, “The report indicates an optimistic outlook for the Delhi-NCR office space market, particularly for Gurugram. As the region is introduced to noteworthy infrastructure growth, it forecasts an upsurge in rental values and leasing activity by GCCs, leading to growth in Grade A retail and office spaces. This momentum reaffirms our vision to deliver cutting-edge commercial spaces and reshape the real estate landscape.”
Salil Kumar, Director-Marketing and Business Management, CRC Group, said, “The surge in leasing by GCCs signals a strong demand for Grade A office spaces. This heightened demand will not only drive the rental prices in prime locations in Delhi-NCR but also catalyze new developments, further strengthening the commercial real estate sector. As global companies secure large office spaces for their GCCs in India, we look forward to sustained demand for commercial spaces, encouraging developers to develop and deliver future-ready office spaces.”
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Thus, as the market continues to evolve, the commercial spaces in India are set to experience sustained growth, reinforcing the country’s status as a strategic destination for global companies. This dynamic environment encourages developers to create specialized and premium office spaces, enhancing the vibrancy and competitiveness of India’s commercial real estate market.
