Gurgaon, India, February 21, 2024: According to Colliers’ latest report, “Global Capability Centers in India: A newfound wave of confidence,” Global Capability Centers (GCCs) are poised to lease approximately 45-50 million square feet (MSF) of office space over the next two years, constituting about 40% of the total office demand across India’s top 6 cities. This anticipated surge in demand underscores improved business sentiments and a positive economic outlook, instilling confidence among foreign companies in establishing their capability centers in India.
GCC Key Highlights:
- The second half of 2023 marked the highest GCC leasing activity since 2020, reaching 12.4 MSF.
- The tech sector led GCC demand, with notable surges seen in BFSI and Engineering & Manufacturing sectors in 2023.
- Bengaluru and Hyderabad accounted for 60% of total GCC demand from 2020 to 2023, with Chennai witnessing significant growth.
- Sub/near dollar markets drove almost 80% of overall GCC leasing.
Arpit Mehrotra, Managing Director, Office Services, Colliers India, commented, “India’s office market outlook is optimistic, buoyed by heightened GCC activity and sustained domestic demand. GCCs are expected to contribute over 40% of total office demand in the next 1-2 years, with technology and BFSI sectors maintaining dominance. The growing interest from Engineering & Manufacturing and Healthcare sectors indicates further diversification in the GCC landscape.”
Sectoral Diversification and Regional Dynamics:
- Since 2020, US-origin firms have accounted for 71% of total GCC demand, followed by EU-based GCCs.
- BFSI and Engineering & Manufacturing sectors witnessed notable increases in leasing activity in 2023, indicating sectoral diversification.
- Bengaluru and Hyderabad emerged as key GCC hubs, with Chennai experiencing significant growth.
Vimal Nadar, Senior Director and Head of Research, Colliers India, emphasized, “Sub and near dollar micro markets remain pivotal for GCC space uptake in India. Looking ahead, improved business sentiments and positive economic outlook are expected to drive heightened demand for office spaces, including GCCs.”
About Colliers:
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company operating in 66 countries. With a team of 19,000 professionals, Colliers delivers expert real estate and investment advice to clients, maximizing the potential of property and real assets.
