India's Global Capability Centres: A Hub for Digital Transformation
Bengaluru, Hyderabad, and Chennai lead the way in GCC office leasing, with Pune remaining a key player due to its competitive real estate costs and diverse talent base.
GccsIndiaOffice LeasingBengaluruHyderabadChennaiPuneReal EstateDigital TransformationReal Estate PuneAug 14, 2024
The city's thriving start-up ecosystem and large technology workforce have contributed to its success. Following Bengaluru, Hyderabad has a 21% share of the GCC leasing market, with about 11.13 million square feet leased. Chennai saw around 7.42 million square feet, and Pune about 6.36 million square feet, leased during this period.
Delhi NCR and Mumbai witnessed 4.77 million square feet and 2.12 million square feet of GCC leasing, respectively. The surge in office space leasing by GCCs highlights India's growing importance as a global business hub.
According to Anshuman Magazine, Chairman & CEO of CBRE India, GCCs are now crucial for digital transformation and product excellence. He emphasized that India's talent pool is becoming a global solution, with further growth expected from the life sciences, automobile, and aerospace sectors.
The analysis by CBRE and Zyoin underscores the demand for skills in engineering, IT, and BFSI, with India's affordable tech workforce making it an attractive destination for GCCs. Pune remains a key player, attracting interest with its competitive real estate costs and diverse talent base.
As Mumbai continues to grow, it's crucial to focus on the needs of these global firms, ensuring that the infrastructure and amenities meet their high standards. By doing so, we can make Mumbai an even more attractive destination for GCCs and other global players, securing a bright future for the city's real estate market.
Global corporations are significantly expanding their presence in India by securing larger office spaces for their Global Capability Centers (GCCs). From 2022 to mid-2024, GCCs leased approximately 53 million square feet across major cities, including Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai.
During the first half of 2024, GCCs were responsible for 37% of total office leasing activity, with the BFSI sector's share increasing to 22%. Bengaluru stands out as the leading city for GCC leasing, holding a 40% market share due to its extensive talent pool and developed tech ecosystem.
Hyderabad's rise is attributed to favourable policies and infrastructure, while Chennai's growth is driven by its robust tech and manufacturing sectors. Builders in Mumbai can take inspiration from Bengaluru's thriving tech ecosystem and consider how to attract similar growth.
The city's potential for future development is immense, especially with the diversification into life sciences, aerospace, and more. As the demand for GCCs continues to grow, India is poised to become a global hub for digital transformation and product excellence.
In the BFSI sector, technology companies have leased around 15 million square feet of office space over the past two-and-a-half years. The surge in office space leasing by GCCs highlights India's growing importance as a global business hub.
The analysis by CBRE and Zyoin highlights the growth of GCCs in India, with Bengaluru, Hyderabad, and Chennai leading the way. Pune remains a key player, attracting interest with its competitive real estate costs and diverse talent base.
The demand for skills in engineering, IT, and BFSI is driving the growth of GCCs in India. As the country continues to grow as a global business hub, the importance of GCCs will only continue to increase.
With the growth of GCCs, India is poised to become a global hub for digital transformation and product excellence. As the demand for GCCs continues to grow, the country is expected to see further growth in the life sciences, automobile, and aerospace sectors.
In conclusion, India's Global Capability Centres are driving the country's growth as a global business hub. With the surge in office space leasing by GCCs, India is poised to become a global hub for digital transformation and product excellence.
Frequently Asked Questions
What is the total office space leased by GCCs in India from 2022 to the first half of 2024?
53 million square feet
Which city has the largest share of GCC office leasing in India?
Bengaluru, with 40% of the market share
What is driving the growth of GCCs in India?
The demand for skills in engineering, IT, and BFSI, as well as India's affordable tech workforce
Which sectors are expected to drive further growth in GCCs in India?
Life sciences, automobile, and aerospace sectors
What is the significance of GCCs in India's growth as a global business hub?
GCCs are crucial for digital transformation and product excellence, and are driving India's growth as a global business hub
Related News Articles
Kerala RERA Appellate Tribunal Vacancy Crisis Resolved: State Assures High Court
The Kerala High Court has disposed of a plea concerning the filling of a judicial member vacancy in the Kerala Real Estate Appellate Tribunal (RERA) following the retirement of VK Babu Prakash.
SEBI's New Rules for F&O: What You Need to Know
Get the latest updates on SEBI's new rules for futures and options trading in India. Learn how these changes will impact your investments and trading strategies.
Aditya Birla Real Estate Launches Luxurious Residential Project in Pune, Shares Surge 2%
Aditya Birla Real Estate, the real estate arm of the Aditya Birla Group, has made a significant entry into the Pune market with the launch of a luxury residential project, Birla Punya. The company's shares saw a 2% increase following this announcement.
DLF to Invest ₹20,000 Crore for Ongoing Housing Projects, Aims to Generate ₹43,000 Crore Surplus
DLF, one of India's leading real estate developers, has announced a significant investment of ₹20,000 crore to complete its ongoing housing projects. The company aims to generate a surplus cash flow of ₹43,000 crore, showcasing its commitment to revitaliz
Mumbai Property Owners: How Micro-Zoning Could Transform Property Rates
In a significant move, the Maharashtra government has introduced micro-zoning, which could bring much-needed relief to property owners in Mumbai. This new zoning regulation is designed to address the unique needs of different neighborhoods and could lead to more equitable property rates.
Dabolim Flyover Controversy: Navy Intervenes, Orders NHAI to Halt Work Immediately
The Indian Navy has ordered the National Highway Authority of India (NHAI) to immediately stop construction work on the Dabolim flyover. This development has sparked controversy, with claims that the project was anti-people and aimed at benefiting the real estate lobby. Here’s a detailed look at the ongoing situation.