Fueled by the country’s talented workforce and cost-effective operations, global capability centres (GCCs) are at the forefront of real estate demand in India, surpassing pre-Covid levels in a strong economy.
In 2024, GCCs have committed to approximately 27.7 million square feet (sq ft) of grade A commercial real estate, following 24.1 million sq ft in 2023. These figures account for 36 percent and 38 percent of total real estate absorption, respectively, as reported by JLL.
Conversely, a recent office market analysis by Knight Frank India revealed that GCCs leased 22.5 million square feet (mn sq ft) in 2024, representing 31 percent of overall leasing activity.
Among these transactions, 50 large deals (each exceeding 100,000 sq ft) totaled 12.1 mn sq ft, while 56 mid-sized deals (ranging from 50,000 to 100,000 sq ft) contributed 4.4 mn sq ft. Additionally, 223 smaller deals (under 50,000 sq ft) accounted for 5.5 mn sq ft of leased space, according to the report.
Net office absorption in the top seven cities reached nearly 50 million sq ft in 2024, reflecting a significant 29 percent increase from 38.64 million sq ft in 2023. This growth was largely driven by strong demand from GCCs and the technology sector, as noted in another report by Anarock Group.
India’s status as a favored location for GCCs remains a key driver of office space demand.
Major multinational companies are strategically increasing their operational footprint in GCC, attracted by the country’s skilled workforce and cost-effective operations.
This trend is anticipated to create significant demand for Grade A office spaces in major markets such as Bengaluru, Hyderabad, NCR, MMR, and Pune.
The transformation of workplace strategies continues to impact market trends. Although hybrid work models are still common, companies are rethinking their office environments to foster collaboration, innovation, and employee well-being, as noted in a report.
The Indian office market is set for positive growth in 2025, supported by several favorable factors influencing the commercial real estate sector. The steady recovery of global economies, especially in the technology industry, is expected to boost demand for office spaces in India’s top seven cities.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
