Chennai to Witness Surge in Global Capability Centres by 2030
Real estate consultant CBRE has released a report titled 'Tamil Nadu: The Epicentre of Capability and Innovation Leadership,' highlighting Chennai's growing prominence as a hub for Global Capability Centres (GCCs).
ChennaiGlobal Capability CentresCbreCommercial Real EstateTamil NaduReal EstateNov 27, 2024
CBRE's report, titled ‘Tamil Nadu The Epicentre of Capability and Innovation Leadership,’ underscores Chennai's growing importance as a destination for GCCs and its expanding commercial real estate landscape. ‘Chennai has solidified its position as a preferred hub for global corporates, which accounts for 11 per cent of India’s current GCC talent,’ CBRE stated.
The city's robust infrastructure, proactive state government policies, and quality office development are key factors contributing to its appeal. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, highlighted, 'As the world embraces digital transformation, GCCs have emerged as strategic drivers of India's exponential growth. Initially attracted by cost advantages, GCCs in India now leverage the country's deep pool of skilled talent and vibrant startup ecosystem.'
Chennai's position as India's fifth-largest office market, with over 90 million square feet of office stock as of September 2024, further strengthens its appeal. The city's office stock is expected to surpass 100 million square feet by 2026. Angad Bedi, CMD of construction and realty firm BCD Group, noted, 'India’s position as a technology outsourcing hub has been further elevated with the rise of the GCC ecosystem in the country as enterprises aim to tap into the wide talent pool, robust technology, and its global use case.'
Chennai currently houses about 250 GCCs that employ over 150,000 professionals, contributing to about 11 per cent of India’s total GCC talent pool. Strategic policies such as the Tamil Nadu Startup and Innovation Policy 2023 and R&D Policy 2022 are enhancing the city's attractiveness. Chennai is ranked third in GCC leasing activity in India, following Bengaluru and Hyderabad, with GCC office absorption increasing from 1.4 million square feet in 2022 to 2.3 million square feet in the first nine months of 2024.
US firms account for 67 per cent of GCC setups between January 2022 and September 2024. CBRE projects that GCCs will lease around 3-3.2 million square feet of office space in Chennai in 2025, indicating a robust future for the city's commercial real estate sector.
CBRE is a leading global real estate services and investment firm, providing comprehensive solutions to real estate owners, users, and investors. The company operates in over 100 countries and has a significant presence in India, offering services ranging from property management to strategic advisory.
Frequently Asked Questions
What is a Global Capability Centre (GCC)?
A Global Capability Centre (GCC) is a facility or unit established by a company to support its global operations through specialized functions such as IT, R&D, and customer support. These centres leverage the cost and talent advantages of the host country to drive efficiency and innovation.
How many GCCs does Chennai currently have?
Chennai currently hosts around 250 Global Capability Centres (GCCs).
What is the projected number of GCCs in Chennai by 2030?
Chennai is expected to have around 450-460 Global Capability Centres (GCCs) by 2030.
What are the key factors driving the growth of GCCs in Chennai?
The key factors driving the growth of GCCs in Chennai include the availability of high-quality office space, a skilled talent pool, robust infrastructure, proactive government policies, and the city's strong corporate ecosystem.
How much office space is expected to be leased by GCCs in Chennai in 2025?
CBRE projects that GCCs will lease around 3-3.2 million square feet of office space in Chennai in 2025.
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