GCCs Propel India’s Office Space Demand: CBRE Report

The recent joint report of CBRE and Zyoin highlighted how GCCs have significantly amplified their Indian operations over the recent decades, fueled by a skilled workforce, cost efficiency, and a conducive business climate. These growth factors have resulted in leading global companies to lease nearly 53 million square feet of office space since 2022 across Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai to set up GCCs.

CBRE’s 2024 India Office Occupier survey also revealed that approximately 67 per cent of GCCs intend to increase their office portfolios by at least 10 per cent within the next two years. Thus, this upsurge in demand for office spaces from GCCs underscores a continued growth trajectory for the commercial real estate sector, encouraging developers to plan and curate more office spaces to meet future demands.

Nisheeth Thukral, Head of Leasing, Ambience Group said, “Global companies leasing office space in India to set up Global Capability Centres (GCCs) will turn out to be the prime drivers for the country's commercial real estate. Even though Bangalore is at the top, NCR has also witnessed increased traction. There is a widespread demand, particularly for Grade A office spaces. As a key player in this thriving market, Delhi National Capital Region (NCR) offers immense potential, with companies like Ambience Group planning luxury mixed-use commercial developments near the Noida Expressway to capitalise on these opportunities.”

Sanchit Bhutani, Managing Director, Group 108, said, “The report showcases a positive viewpoint for Delhi-NCR’s commercial space market in India. Notably, the area around the Noida Expressway indicates a higher potential, fueled by the demand for office spaces and retail outlets. Further, significant infrastructure developments like the Noida International Airport have strengthened commercial realty growth. As global businesses expand their presence in the region, the trend encourages developers to create more specialized and premium office spaces, catering to the unique needs of various industries and enhancing the overall vibrancy of India's commercial real estate landscape."

Moreover, the availability and cost of quality real estate emerge as one of the prime growth factors for GCCs in India. The report also indicated that the leasing for GCCs accounted for 37 per cent of the total leasing during H1 of 2024.

Harinder Singh Hora, Founder Chairman, Reach Group, said, “The report indicates an optimistic outlook for the Delhi-NCR office space market, particularly for Gurugram. As the region is introduced to noteworthy infrastructure growth, it forecasts an upsurge in rental values and leasing activity by GCCs, leading to growth in Grade A retail and office spaces. This momentum reaffirms our vision to deliver cutting-edge commercial spaces and reshape the real estate landscape.”

Salil Kumar, Director- Marketing and Business Management, CRC Group, said, “The surge in leasing by GCCs signals a strong demand for Grade A Office spaces. This heightened demand will not only drive the rental prices in prime locations in Delhi-NCR but also catalyze new developments, further strengthening the commercial real estate sector. As global companies secure large office spaces for their GCCs in India, we look forward to sustained demand for commercial spaces, encouraging developers to develop and deliver future-ready office spaces.”

Thus, as the market continues to evolve, the commercial spaces in India are set to experience sustained growth, reinforcing the country's status as a strategic destination for global companies. This dynamic environment encourages developers to create specialised and premium office spaces, enhancing the vibrancy and competitiveness of India's commercial real estate market.