 "MNCs, GCCs lead India office space leasing; to reach 62 mn sq ft by 2025")
Office space leasing in India is dominated by Global Capability Centres (GCC) and offshore units of multinational corporations. The total area under lease for such infrastructure is likely to reach 60-62 million square feet between 2023 and 2025, the 'Economic Times' reported citing data from CBRE.
By 2025, the number of GCCs in the country is estimated to go up from 1,580 to 1,900 by 2025, the newspaper reported. The number of GCCs is likely to reach 3,000 by 2030 with more than 3 million employees working there, up from 1.3 million workers now.
"Currently, GCCs occupy about 200 million sq ft, and we anticipate this to expand to 280-300 million in the next 3-4 years, creating a demand surge of 80-100 million sq ft. Still, 80 per cent of the global 2000 firms do not have a GCC in India, which is the next big opportunity for the country," Ramesh Nair, chief executive officer (CEO) of Mindspace Business Parks REIT, told the newspaper.
The report said that the GCCs are estimated to account for about 35-40 per cent of the overall office leasing. Anshuman Magazine, chairman and CEO for India, South-East Asia, Middle East & Africa at CBRE, told the newspaper that global companies reconsidered their business and the scope for digitisation in the wake of the coronavirus pandemic.
He said that several global firms have decided to establish their GCCs in India to ensure business agility, improve efficiency, and move towards digitisation. This includes large, mid-sized, and smaller-sized firms.
Other than this, companies are also considering tier-II cities now to establish their capability centres. Shweta Sawhney, CEO of Altre Digital, said that India is very well-positioned to benefit from the growth in the GCC segment, said the report.