GCCs fuel record-breaking office leasing in India, to exceed 2,500 units in 3-4 years

Mumbai:  Global capability centres (GCCs) fuelled record-breaking 77.2 million square feet office leasing in India, accounting for 36 per cent of total demand in 2024, according to a report on Wednesday.

In 2024, GCCs leased 28 million square feet, recording all-time high activity levels that represent a significant 15.2 per cent increase and further solidify their dominance in India’s office markets.

With over 1,950 GCC units in India as of December 2024 and projections to exceed 2,500 in the next 3-4 years, Bengaluru’s leadership is pivotal in shaping India’s commercial real estate sector, according to a JLL report.

Leasing activity in the top seven cities skyrocketed to unprecedented levels of 77.2 million square feet in 2024 – a remarkable 22.6 per cent year-on-year increase from 63 million sq ft in 2023.

At the epicentre of this extraordinary boom were GCCs, a powerhouse occupier segment that continues to shape India’s commercial landscape.

From 2016 to 2024, these global R&D and business transformation hubs have accounted for an impressive 40 per cent of overall office leasing activity.

“This trend not only reflects India’s rising status as the ‘office to the world’ but also signals a strong trajectory for sustained economic expansion and innovation in the coming years,” said Dr Samantak Das, chief economist and head of research and REIS, India, JLL.

Bengaluru remains India’s premier GCC hub, leveraging its established ecosystem to attract further investment and headcount growth.

In 2024, the city captured 47 per cent of the total GCC leasing demand nationwide, showcasing its continued leadership with consistently high space take-up by GCCs.

Meanwhile, Hyderabad has emerged as a formidable contender in the GCC landscape, positioning itself as an attractive complementary location for companies seeking expansion.

Notably, GCCs, chasing talent and innovation clusters have shown significant interest in Chennai, which exhibits the strongest growth in the last three years.

“Momentum remained strong in Delhi NCR and Pune as well. The GCC footprint expansion across key cities is clearly indicative of their deep understanding of India’s tech ecosystem and the ability to analyse key factors around talent availability,” according to the report.

–IANS