Arabic
English
Gujarati
Hindi
Kannada
Marathi
Telugu
In a testament to India’s resilient economy, Global Capability Centres (GCCs) are driving a significant surge in commercial real estate demand, surpassing pre-COVID levels. The country’s highly skilled talent pool, combined with its cost advantages, makes it a prime destination for these centres, leading to substantial growth in office space absorption across major cities.
According to data from a prominent real estate consultancy, GCCs have already committed to 27.7 million square feet (sq ft) of Grade A commercial real estate in 2024, compared to 24.1 million sq ft in 2023. These figures represent 36% and 38% of the total real estate absorption, respectively. Another market analysis from a leading consultancy highlighted that in 2024, GCCs leased approximately 22.5 million sq ft, which made up 31% of the total leasing volumes.
This leasing activity includes a mix of large, mid-sized, and smaller deals. For instance, 50 large transactions (each over 100,000 sq ft) accounted for 12.1 million sq ft, while 56 mid-sized agreements (ranging from 50,000 to 100,000 sq ft) totaled 4.4 million sq ft. Additionally, 223 smaller deals, each under 50,000 sq ft, made up 5.5 million sq ft of leased space.
The total net office absorption in the country’s top seven cities reached nearly 50 million sq ft in 2024, reflecting a significant 29% increase from 38.64 million sq ft in 2023. This growth is primarily attributed to strong demand from GCCs and the technology sector, both of which continue to drive the need for modern, expansive office spaces.
India’s appeal as a preferred destination for Global Capability Centres remains a major factor in the robust absorption of office space, as these centres seek to capitalize on the country’s economic strengths, skilled workforce, and competitive operational costs. As more multinational companies establish or expand their operations in India, the demand for commercial real estate is expected to keep rising, further reinforcing the nation’s position as a global hub for business and innovation.
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.
