GCCs Now Contribute 28% to Indian Office Space Leasing
The Indian real estate sector is experiencing a robust growth, driven by a consistent surge in leasing activity over the past three years. Global Captive Centers (GCCs) have emerged as a significant contributor, accounting for 28% of the office space leas
Real EstateOffice LeasingGccsIndian MarketCitywise AnalysisReal Estate NewsJan 05, 2025
Over the last three years, the market has seen a consistent and strong performance, with Global Captive Centers (GCCs) playing a pivotal role in this growth.
According to recent data, GCCs now contribute 28% to the office space leasing in India.
of the Real Estate Sector in India
The real estate sector in India has been a key driver of economic growth, contributing significantly to the GDP.
The office market, in particular, has been a bright spot, with a steady increase in demand from various industries, including IT, BFSI, and healthcare.
The rise of GCCs has further fueled this demand, as multinational companies continue to set up their back-office operations in India to leverage the country's talent pool and cost-effective solutions.
Role of GCCs in Office Space Leasing
Global Captive Centers, often referred to as shared service centers, are subsidiaries of multinational corporations that provide various support functions such as IT, finance, and HR to their parent companies.
These centers have become increasingly popular due to their ability to reduce operational costs and improve efficiency.
In India, GCCs have found a fertile ground, thanks to the availability of skilled professionals and favorable business environment.
Over the past few years, the number of GCCs in India has grown exponentially, leading to a significant increase in office space demand.
This trend is expected to continue, driven by the ongoing digital transformation and the need for companies to optimize their operations.
City-wise Analysis
The demand for office space from GCCs is not evenly distributed across Indian cities.
Bangalore, Hyderabad, and Pune are the top cities where GCCs are setting up their operations.
These cities offer a combination of skilled talent, infrastructure, and a business-friendly environment, making them attractive destinations for GCCs.
- Bangalore Known as the 'Silicon Valley of India', Bangalore has the highest concentration of GCCs, driven by its strong IT and ITES sectors.
- Hyderabad With a burgeoning IT sector and a large pool of skilled professionals, Hyderabad has emerged as a preferred location for GCCs.
- Pune Pune's robust industrial base and growing technology sector have made it an attractive hub for GCCs.
Future Outlook
The future of the Indian office market looks promising, with GCCs expected to continue their significant contribution to leasing activities.
The government's initiatives to promote the ease of doing business and the ongoing digital transformation are expected to further boost the growth of GCCs in India.
XYZ Realty Solutions is a leading real estate consultancy firm in India, specializing in commercial and residential property management.
With over a decade of experience, XYZ Realty Solutions has helped numerous clients navigate the complex real estate landscape, providing tailored solutions to meet their unique needs.
Contact Information
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Frequently Asked Questions
What are Global Captive Centers (GCCs)?
Global Captive Centers, also known as shared service centers, are subsidiaries of multinational corporations that provide various support functions such as IT, finance, and HR to their parent companies. They are set up to reduce operational costs and improve efficiency.
Why are GCCs choosing India for setting up their operations?
GCCs are choosing India due to the availability of skilled professionals, favorable business environment, and cost-effective solutions. India's strong IT and ITES sectors also make it an attractive destination for these centers.
Which cities in India have the highest concentration of GCCs?
Bangalore, Hyderabad, and Pune are the top cities where GCCs are setting up their operations. These cities offer a combination of skilled talent, infrastructure, and a business-friendly environment.
What is driving the growth of GCCs in India?
The growth of GCCs in India is driven by the ongoing digital transformation, the need for companies to optimize their operations, and government initiatives to promote the ease of doing business.
What is the current contribution of GCCs to office space leasing in India?
As of the latest data, GCCs contribute 28% to the office space leasing in India, a significant share in the real estate market.
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