India’s commercial real estate sector is witnessing a significant upsurge, driven by the rapid expansion of Global Capability Centres (GCCs). Over the past few decades, India has emerged as a prime destination for these centres, thanks to its skilled workforce, cost-effective operations, and a conducive business environment.
This trend has led global corporations to lease approximately 53 million square feet of office space since 2022 in major cities like Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai, underscoring the sustained demand for commercial real estate. The 2024 India Office Occupier survey by CBRE reveals that nearly 67% of GCCs plan to expand their office portfolios by at least 10% over the next two years. This anticipated growth highlights the ongoing demand for office spaces, encouraging developers to strategically design and construct additional commercial spaces to meet future needs.
Prominent developers in India are keenly observing this trend. A spokesperson from Ambience Group noted that international corporations establishing GCCs are poised to be major catalysts for India’s commercial real estate market. While Bengaluru remains the frontrunner, the National Capital Region (NCR) is also experiencing heightened interest, particularly for Grade A office spaces. Ambience Group, recognising this demand, is planning upscale mixed-use commercial projects near the Noida Expressway to capitalise on these opportunities.
Further emphasising the NCR’s potential, a spokesperson from Group 108 highlighted the positive outlook for commercial real estate in the Delhi-NCR area. The development around the Noida Expressway, bolstered by infrastructure projects like the Noida International Airport, is driving demand for office and retail spaces. This surge is pushing developers to create more specialised and premium office environments, catering to the diverse needs of global businesses and enhancing the overall commercial real estate landscape in India.
The availability and competitive pricing of high-quality real estate have been key factors in attracting GCCs to India. According to recent reports, GCCs accounted for 37% of total leasing activity during the first half of 2024, signalling their growing footprint in the country. A spokesperson from Reach Group expressed optimism about the Delhi-NCR office market, particularly in Gurugram. The region’s infrastructure advancements are expected to increase rental values and leasing activity by GCCs, leading to further growth in Grade A retail and office spaces. This momentum aligns with Reach Group’s vision of delivering state-of-the-art commercial spaces that reshape the real estate landscape.
Similarly, the CRC Group pointed out that the surge in leasing activity by GCCs indicates a robust demand for Grade A office spaces. This demand is likely to drive rental prices in prime locations within Delhi-NCR and catalyse new developments, further solidifying the sector’s growth. As global companies secure large office spaces for their GCCs, the continued demand for commercial real estate is expected to inspire developers to create future-ready office spaces.
