GCCs Drive Office Space Demand in India's Thriving Commercial Real Estate Sector
GCCs' growing demand for office spaces fuels India's commercial real estate growth, with 67% planning to expand their portfolios by 10% in the next two years.
GccsCommercial Real EstateIndiaOffice Space DemandReal Estate MarketReal Estate MumbaiAug 24, 2024
These growth factors have resulted in leading global companies leasing nearly 53 million square feet of office space since 2022 across Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai to set up GCCs.
A survey also revealed that approximately 67% of GCCs intend to increase their office portfolios by at least 10% 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.
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 leasing for GCCs accounted for 37% of the total leasing during H1 of 2024.
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 specialized and premium office spaces, enhancing the vibrancy and competitiveness of India's commercial real estate market.
Frequently Asked Questions
What is driving the growth of GCCs in India?
GCCs are being driven by a skilled workforce, cost efficiency, and a conducive business climate in India.
How much office space have GCCs leased in India since 2022?
GCCs have leased nearly 53 million square feet of office space since 2022 across major cities in India.
What percentage of GCCs plan to increase their office portfolios in the next two years?
Approximately 67% of GCCs intend to increase their office portfolios by at least 10% within the next two years.
What is the significance of the commercial real estate sector in India?
The commercial real estate sector in India is experiencing sustained growth, reinforcing the country's status as a strategic destination for global companies.
What is the role of developers in the growing commercial real estate market in India?
Developers are encouraged to create specialized and premium office spaces, enhancing the vibrancy and competitiveness of India's commercial real estate market.
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