Leasing by Global Capability Centre (GCC) increased by 17 per cent y-o-y in FY23-24 compared to FY22-23. The leasing by GCC’s in the country stood at 22.5 million sq ft in FY23-24 compared with 19.2 million sq ft in FY22-23. This growth was primarily driven by key sectors such as Engineering and Manufacturing, BFSI and technology sectors, says a report by CBRE South Asia Pvt Ltd, India’s leading real estate consulting firm.

In Jan-Mar 2024, GCCs leased 29 per cent of the total office space leased in India. Notably, the total leasing in the GCC segment stood at 4.2 million sq ft in January-March 2024. Among these GCCs, E&M (Engineering and Manufacturing) companies accounted for over a quarter of the space, with automobile firms following closely behind, the firm said in a release.

GCCs have become an important catalyst for change in the Indian office sector. With 1.3 million talent as of 2019, the sector saw a 30-35 per cent share of total office leasing in India in 2017-2019 period with over 1,250 operational GCCs.

The release said that between the 2020-2022 period, GCCs accounted for 38–43 per cent of the total leasing, housing over 1,580 operating GCCs with a talent pool of 1.66 million as of 2022.

Growth leader

The firm anticipates that during 2023-2025, the GCCs will account for a significant 35-40 per cent of the total office leasing. Moreover, India has been a leader in the growth of GCCs, expected to host over 1,900 GCCs by 2025 with a professional talent pool that exceeds 2 million.

With an estimated 5.4 million technology experts, India provides GCCs with an abundant talent landscape for thriving and innovating. The country also offers a competitive cost framework encompassing talent, rentals and operational costs, presenting an attractive proposition for businesses seeking to optimise their operational expenses while maintaining high standards.

Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE, said, with projections indicating significant leasing by GCCs at 40-45 million sq ft 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.

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. Consequently, the country is likely to witness more state-of-the-art GCCs going ahead, he said.

Pointers
By 2025 the number of operational GCCs are expected to expand by 20 per cent.
CBRE Projects significant leasing by GCCs at 40-45 million sq ft. between 2024-2025.
Growth to be driven by companies establishing large campuses to strengthen their presence.
Emerging sectors like life sciences, automobiles and aviation to join the expansion wave.