GCC leasing in top 6 cities up 8% in first six months of 2024: CBRE

Global landscape, human capital and real estate foundational pillars of GCC prosperity in India, says the report

The office leasing by Global Capability Centres (GCCs) in the top six cities in India rose 8 per cent to 11.8 million square feet (MSF) in the first six months of 2024, owing to a dominant talent pool, thriving start-up landscape and proactive government policies, according to a report by real estate consultancy CBRE and Zyoin.

The GCCs had leased 11.1 MSF office space during the corresponding period last year. Since 2022, GCCs have leased a total of 53 MSF in India. Out of this, the highest was in Bengaluru. The data showed India's IT hub accounted for 40 per cent of all the leasing in the country.

 

“Bengaluru reigns supreme as the GCC epicenter, fortified by a dominant talent pool, a mature technology ecosystem, and a thriving start-up landscape. The city boasts a two-million-strong technology workforce, the largest in India,” CBRE said.

It added that the Karnataka government's upcoming GCC policy is expected to increase the number of these centres in the city.

Hyderabad was the second in the list, accounting for 21 per cent of all the leasing, followed by Chennai at 14 per cent. The report said that Hyderabad has become a priority among the GCCs due to the government's proactive policy framework and efficient urban infrastructure.

“An enhanced lifestyle and lower costs further incentivise company setups,” it said.

For Chennai, a vibrant technology sector and manufacturing base have played a role in attracting GCCs. Besides technology and manufacturing, global banking giants are also active in the city.

“The city witnessed 6 MSF of GCC office space leases over 2023 - H1 2024, constituting 17 per cent of total GCC leasing during this period,” it said.

Overall, the report said that the global landscape, human capital and real estate are the foundational pillars of GCC prosperity in India. These centres currently employ around 1.66 million people in India.

“This vast and growing talent pool makes India an attractive destination for GCCs, especially considering the average salary of software professionals in India is only one-tenth of the cost in the US for similar roles,” it said.

Technology and BFSI companies have historically been the primary GCC office space occupiers. However, niche firms, including hedge funds and private equity firms, are expanding in India.