Offshoring companies, led by Global Capability Centres (GCCs), have leased over 46 per cent of the office space in India with an overall leasing volume of 27.3 million square feet in 2023, and a growth of 26 per cent on year according to a report by Knight Frank.

GCCs that are mushrooming in India have accounted for a significant chunk of this leasing, being the biggest offshore occupiers. Of the total, GCCs leased 20.8 msf, the report said. GCCs share in office leasing increased to 35 per cent in 2023 from 25 per cent, a year ago.

GCCs are specialised captive units set up by global companies where they carry out specialised functions ranging from research and innovation to offering a gamut of services including accounting and legal to their operations worldwide.

While the information technology sector has the most number of GCCs, over the last one year other sectors such as financial services, automobiles, healthcare have also set up GCCs in India.

The technology sector leased 11 msf space, followed by industrials and BFSI at 5.6 msf each.

“The growing share of GCCs in total leases will remain supportive of office market demand in 2024,” said Viral Desai, Senior Executive Director, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency Knight Frank India. He pointed out that over the past decade India has transformed itself from a cost-effective centre into a value-adding captive centre.

“By 2030, there will be an estimated 2400 GCCs across India as it emerges as a global technology and services hub. Assuming a similar pace of growth, the number of GCCs in India may scale up to 2880 by 2034,” he added.

Offshoring has emerged as a critical driver propelling office demand in the four APAC hubs of India, Philippines, Malaysia and Vietnam.

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