The influence of Global Capability Centres (GCCs) on India’s commercial real estate landscape is undergoing a profound transformation, positioning these entities as a key driver of office space demand. According to data from Colliers, GCCs have significantly ramped up their leasing activities, occupying over 21.1 million square feet in 2023, a marked increase from 17 million square feet in 2020. This shift underscores the growing role of GCCs post-pandemic, marking their ascendance in a market traditionally dominated by IT services firms.
Currently, India is home to over 1,600 Global Capability Centres, which are playing an increasingly pivotal role in the country’s workforce and economy. In the current fiscal year, hiring by GCCs has outpaced the IT services sector, reflecting a strategic shift towards these centres as a crucial employment hub for white-collar professionals. As these companies continue to expand their Indian operations, the demand for high-quality office space has surged. By 2023, GCCs accounted for 37% of the total office space leased, and this share is projected to rise to 40% within the next two years.
In parallel, real estate firms Cushman & Wakefield and Knight Frank have corroborated these trends, reporting that GCCs were the only segment of the commercial real estate market to witness growth in 2023. Notably, other segments, including co-working spaces and third-party IT firms, saw a decline in activity. Over 80 new GCC establishments or expansions were recorded in the past year alone, underscoring the sector’s resilience and its role in shaping India’s commercial real estate landscape. Key occupiers driving the demand for office space include global giants like Deloitte, Qualcomm, MUFG Bank, Bank of America, Citibank, and Fidelity. The continued growth of these corporations reflects the strategic importance of India’s commercial real estate market for international businesses. Moreover, the increased focus on sustainability is evident in how many GCCs are adopting green office spaces, aligning with broader efforts towards environmental responsibility in urban development.
From a sustainability angle, the rising demand for office space presents both opportunities and challenges. With more corporations embracing green-certified buildings, the push for sustainable office infrastructure is growing. The integration of energy-efficient technologies and eco-friendly materials in commercial spaces not only contributes to environmental sustainability but also enhances long-term value for developers and investors. This trend aligns with India’s broader urban sustainability goals, fostering a real estate ecosystem that is both economically and environmentally viable. While the rise of GCCs offers a promising outlook for India’s commercial real estate market, civic issues such as infrastructural bottlenecks and urban congestion remain pressing challenges. The rapid growth of these centres has placed increased pressure on urban infrastructure, particularly in major cities like Bengaluru, Hyderabad, and Pune. Addressing these civic concerns will be critical in ensuring the sustainable expansion of India’s commercial real estate sector.
