The presence of Global Capability Centres (GCCs) of foreign firms in India’s commercial real estate sector is witnessing a notable ascent, marking a significant shift in the office space leasing dynamics. According to Colliers, a renowned real estate management firm, the space leased by GCCs in 2023 has reached its highest point since 2020, indicating a growing influence of these entities post-pandemic.
Traditionally dominated by IT firms in the preceding decade, the commercial real estate landscape has undergone a transformation with GCCs emerging as prominent players. Colliers’ data reveals a steady increase in the leasing activity by GCCs, with the space leased growing from 17 million sqft in 2020 to 21.1 million sqft in 2023, constituting 37% of the total office space leased by companies. Colliers anticipates this share to further rise to 40% in the next 24 months, underscoring the growing significance of GCCs in India’s office market.
India currently hosts over 1,600 GCCs, which have witnessed robust hiring activity surpassing that of the traditional IT services sector in the current fiscal year. This trend underscores the evolving role of GCCs as key employers of white-collar professionals in India’s workforce. Echoing Colliers’ observations, real estate firm Cushman and Wakefield asserts that the growth trajectory of India’s commercial real estate market is increasingly shaped by the expansion of GCCs. The report highlights the significant scale-up of GCC operations, with more than 80 new establishments or expansions recorded in the past year alone.
Knight Frank’s recent India real estate report corroborates these findings, noting that GCCs were the sole segment within the commercial real estate sector to experience growth in 2023. Conversely, segments such as flex spaces or co-working spaces, along with third-party IT firms, witnessed a decline in activity during the same period. Key occupiers driving the demand for office space in 2023 include industry giants such as Deloitte, Qualcomm, MUFG Bank, Bank of America, Citibank, and Fidelity. Their sustained expansion underscores the strategic importance of India’s commercial real estate market for global corporations. The surge in leasing activity by GCCs underscores their pivotal role in shaping India’s commercial real estate landscape, reflecting a broader trend towards increased corporate investment and expansion in the country.
