GCCs to Dominate India's Commercial Real Estate by 2024
GCCs are set to control 35% of India's commercial real estate by 2024, up from 26% in 2022, driven by increasing demand for office space.
GccsCommercial Real EstateIndiaKnight FrankGlobal Business EcosystemReal EstateAug 07, 2024
This surge in GCC presence is driven by the booming sector's need for more office space. The information technology (IT) sector, on the other hand, is expected to maintain its share at 16%. According to a recent Knight Frank report, the expansion of GCCs reflects their growing role in India's economy.
The Economic Survey 2024 projects that by 2030, GCCs will contribute approximately 3.5% to the country's GDP, generating around USD 121 billion. This growth is fueled by a surge in GCCs catering to the manufacturing sector and a maturing technology talent pool.
By the end of 2024, GCCs are expected to absorb 21.83 million square feet of office space, out of a total of 70 million square feet absorbed by all Indian companies. This absorption is indicative of the GCC sector's robust expansion and its pivotal role in driving business innovation and efficiency.
The report also highlights that the IT/ITeS sector leads in GCC presence, followed by BFSI and consulting sectors. In terms of geographical distribution, Mumbai is a major hub for BFSI GCCs, while Bengaluru leads for IT/ITeS. Notably, about 80% of India's GCCs serve international clients, underlining the country's strategic position in the global business landscape.
India's rapid GDP growth, coupled with its strong infrastructure and skilled workforce, continues to attract global businesses. As GCCs expand their footprint, they are set to further enhance India's reputation as a key player in the global business ecosystem.
Knight Frank is a leading global real estate consultancy firm, providing expertise in commercial and residential property services. With a presence in over 500 offices across 60 countries, Knight Frank provides comprehensive solutions to its clients, including investment, leasing, and property management services.
GCCs, on the other hand, are strategic operations centers that enable companies to achieve their global business objectives. GCCs in India have been growing rapidly, with many global companies setting up their GCCs in the country to leverage its skilled workforce and favorable business environment.
In conclusion, the rise of GCCs in India is transforming the country's commercial real estate landscape. As GCCs continue to expand their presence, they are set to play a crucial role in driving business innovation and efficiency, further solidifying India's position as a global business hub.
Knight Frank is a leading global real estate consultancy firm, providing expertise in commercial and residential property services. With a presence in over 500 offices across 60 countries, Knight Frank provides comprehensive solutions to its clients, including investment, leasing, and property management services.
Frequently Asked Questions
What is the expected share of GCCs in India's commercial real estate by 2024?
35%
What sector is expected to maintain its share at 16% in India's commercial real estate?
Information Technology (IT) sector
What is the projected contribution of GCCs to India's GDP by 2030?
Approximately 3.5%
What is the expected absorption of office space by GCCs by the end of 2024?
21.83 million square feet
What percentage of India's GCCs serve international clients?
About 80%
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