Global Capability Centres to Drive 40% of Office Space Absorption by 2025

A recent report by CBRE, a leading real estate consultancy, predicts that Global Capability Centres (GCCs) will account for approximately 40% of office space absorption in India by 2025. The technology sector is expected to be the primary driver of this demand.

Global Capability CentresOffice Space AbsorptionReal EstateTechnology SectorCbreReal EstateApr 05, 2025

Global Capability Centres to Drive 40% of Office Space Absorption by 2025

Real Estate:The real estate market in India is witnessing a significant shift, driven by the growing importance of Global Capability Centres (GCCs). According to a report by CBRE, a prominent real estate consultancy, GCCs are set to account for about 40% of the total office space absorption in India by 2025. This trend underscores the increasing role of GCCs in the country’s economic landscape and highlights the robust demand for office spaces, particularly in the technology sector.

The report delves into the factors contributing to this surge in demand. One of the key drivers is the shift towards digital transformation and the growing need for specialized talent. GCCs, which are essentially offshore hubs where multinational corporations (MNCs) house their core functions, have become a preferred choice due to the availability of skilled professionals and cost-effectiveness. This has led to a significant increase in the number of GCCs being established in major cities like Bangalore, Pune, and Gurgaon.

The technology sector, in particular, is expected to lead the charge in terms of office space demand. The rise of technology companies, both domestic and international, has created a tremendous need for modern, well-equipped office spaces. These companies are leveraging the talent pool in India to develop cutting-edge solutions, driving innovation and growth. The report suggests that technology firms will continue to dominate office space absorption, driven by the expansion of existing operations and the entry of new players into the market.

Another significant factor is the Government of India’s initiatives to promote the establishment of GCCs. Programs like ‘Make in India’ and ‘Digital India’ have created a conducive environment for MNCs to set up their operations in the country. These initiatives offer a range of incentives, including tax breaks and streamlined regulatory processes, making it easier for companies to set up and operate GCCs in India. The government’s focus on skill development and infrastructure improvement has also played a crucial role in attracting investments.

However, the report also points out some challenges that need to be addressed to sustain this growth. One of the primary concerns is the availability of high-quality office spaces that meet the demands of modern businesses. Developers need to focus on creating spaces that are not only functional but also offer a premium experience in terms of amenities and sustainability. Additionally, there is a need to enhance connectivity and infrastructure in key cities to support the growing number of GCCs.

Despite these challenges, the outlook for the office space market in India remains positive. The combination of a skilled workforce, favorable government policies, and the increasing importance of digital transformation is expected to drive further growth in the sector. CBRE’s report highlights the significant role that GCCs will play in shaping the future of the Indian real estate market, making it an attractive destination for businesses looking to expand their global footprint.

In conclusion, the report by CBRE provides valuable insights into the evolving landscape of the Indian real estate market. The projected growth of GCCs and the technology sector is likely to have a profound impact on the office space demand, creating new opportunities and challenges for developers, investors, and businesses alike. As the market continues to evolve, it will be crucial to address the infrastructure and connectivity gaps to ensure sustainable growth and maintain India’s position as a leading destination for GCCs.

Frequently Asked Questions

What are Global Capability Centres (GCCs)?

Global Capability Centres (GCCs) are offshore hubs where multinational corporations (MNCs) house their core functions, such as research and development, IT, finance, and human resources. These centers leverage the skilled talent pool and cost-effectiveness of the host country to support their global operations.

Why is the technology sector leading the office space demand in India?

The technology sector is leading the office space demand in India due to the rise of technology companies, both domestic and international. These companies require modern, well-equipped office spaces to develop cutting-edge solutions and drive innovation.

What government initiatives are promoting the establishment of GCCs in India?

Government initiatives like ‘Make in India’ and ‘Digital India’ are promoting the establishment of GCCs in India. These programs offer a range of incentives, including tax breaks and streamlined regulatory processes, to attract investments.

What challenges are faced in meeting the demand for high-quality office spaces?

The challenges faced in meeting the demand for high-quality office spaces include the need for developers to create functional and premium office spaces, enhance connectivity, and improve infrastructure in key cities to support the growing number of GCCs.

What is the outlook for the office space market in India in the coming years?

The outlook for the office space market in India remains positive, driven by a skilled workforce, favorable government policies, and the increasing importance of digital transformation. The market is expected to continue growing, with GCCs playing a significant role in shaping the future of the Indian real estate market.