Office space leasing by GCCs up 17% to 22.5 mn sq ft in 2023-24: Report

India expected to have more than 1,900 such facilities by 2025 and more than 2 mn will be employed there, it says

Office space leasing by global capability centres (GCCs) in India increased by 17 per cent year-on-year (Y-o-Y) in the financial year 2023-24 (FY24) compared to FY23, said a report on Tuesday, citing engineering, manufacturing and financial services among sectors that are helping growth.

Total leasing by GCCs stood at 22.5 million square feet in FY24, compared to 19.2 million square feet in FY23, according to real estate consultancy CBRE South Asia. A GCC supports its parent company by handling operations like technology, customer service, finance, and product development.

In the January-March quarter, GCCs accounted for 29 per cent of all office leasing in the country and had 4.2 million square feet with them. They accounted for a 30-35 per cent share of total office leasing between 2017 and 2019.

As of 2022, GCCs accounted for 38-43 per cent of total office leasing, with 1,580 operational centres. In the 2023-25, GCCs are expected to account for 35-40 per cent of total office leasing. "CBRE projects significant leasing by GCCs at 40-45 million square feet between 2024-2025," said the report.

India is expected to have over 1,900 GCCs by 2025, with a professional talent pool of over 2 million. GCCs now employ around 1.6 million people in the country.

"The trajectory of global capability centres in India is poised for a significant shift, driven by a growing demand for premium office spaces that offer modern amenities and enriching experiences for the workforce," CBRE said.

"As occupiers increasingly prioritise quality, they will seek out office buildings that provide not only superior infrastructure but also tailored and engaging workplace environments. This trend, coupled with improving office occupancies and the evolution of work patterns, will lead to a heightened focus on investing in high-quality office spaces that meet the changing needs of GCCs."

India's strategic emphasis on digital technology and competitive costs for talent and rentals are instrumental in GCCs’ growth, said Anshuman Magazine, chairman and chief executive officer (India, South-East Asia, Middle East and Africa), CBRE.

"The gradual upskilling of talent in existing as well as new roles and greater synergies between the private sector and educational institutions will continue to drive value creation in India," he said.