HomeReal EstateCommercialIndia Sees 17% Increase in Office Space Leasing for GCCs

India Sees 17% Increase in Office Space Leasing for GCCs

India experienced a significant uptick in the leasing of office spaces by foreign firms establishing Global Capability Centres (GCCs), with a 17% increase reported for the fiscal year 2023-24. According to real estate consultancy CBRE, the total office space leased for GCC setups reached 22.5 million square feet during this period, a notable rise from the 19.2 million square feet recorded in the previous fiscal year.

This surge in demand highlights India’s growing appeal as a strategic hub for multinational corporations seeking to establish and expand their operational capabilities. The increased leasing activity underscores the confidence of global enterprises in India’s potential to support their diverse operational needs, ranging from IT services to research and development. CBRE’s data indicates that this trend is likely driven by several factors, including India’s skilled workforce, competitive real estate costs, and the favourable business environment fostered by government policies. The establishment of GCCs not only contributes to the real estate sector but also enhances employment opportunities and technological advancements within the country.

Industry experts suggest that this upward trajectory in office space leasing is expected to continue, as more international companies recognise the strategic advantages of setting up GCCs in India. The increasing presence of these centres is poised to further cement India’s position as a pivotal player in the global business landscape. As the fiscal year progresses, stakeholders in the real estate and corporate sectors will closely monitor these developments, anticipating continued growth and potential new investments in the Indian market. The 17% increase in office space leasing for GCCs reflects a broader trend of global companies leveraging India’s unique offerings to enhance their operational efficiency and global footprint.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, ‘With projections indicating significant leasing by GCCs at 40-45 million square feet between 2024 and 2025, India’s strategic emphasis on digital technology, combined with its competitive costs for talent and rentals, remains instrumental in propelling the growth.’

Consequently, Magazine said India is likely to witness more sophisticated GCCs going ahead. The gradual upskilling of talent in existing as well as new roles and greater synergies between the private sector and educational institutions would continue to drive value creation in India, he added.

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