by THO
Bengaluru led leasing by Global capability centres (GCCs) in India between 2022 to H1 2024 with a 40% share, according to a CBRE- Zyoin report released on August 5.
According to the report, GCCs leased nearly 53 million square feet of office space across the six markets of Bengaluru, Mumbai, Hyderabad, Chennai, Pune and Delhi-NCR during the 30-month period.
With a 21% share, Hyderabad accounted for the second highest leasing activity by GCCs between 2022- H1 2024, per the report. It has ascended to GCC prominence due to the government’s proactive policy framework and efficient urban infrastructure, the report reasoned. An enhanced lifestyle and lower costs further incentivize company setups, it said.
Meanwhile, Chennai and Pune accounted for a 14% and 12% share, respectively. “Tamil Nadu’s R&D Policy 2022 offers attractive incentives to GCCs and R&D centers,” the report highlighted.
GCCs, also known as global in-house centres or captives, are offshore units of large multinationals performing technology operations.
This growth was propelled by a skilled workforce, cost efficiency and a conducive business climate in the country, the report noted.
During the first half of 2024, GCC leasing activity across the six markets grew 8% year-on-year, accounting for 37% of the total office leasing activity in India, per the report.
Also Read: Leasing by Global Capability Centres in India increases by 17%; touches 22.5 mn sq ft in FY 2023-24
“The future promises further diversification as life sciences, automobiles, and aerospace sectors expand their Indian GCC presence. With a strategic roadmap for 2024 GCC development, India is poised to spearhead the next wave of globalization,” said Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE India.
Historically, technology and BFSI corporates have been the primary GCC office occupiers in India. However, that is slowly witnessing a shift now, the report said. Niche firms, including hedge funds and private equity firms, are expanding their presence in India. Life sciences and engineering and manufacturing GCCs too have exhibited an increasing appetite for expansion in the country, per the report.
Regional trends
The report credited Bengaluru’s lead amongst the six cities to its dominant talent pool, mature technology ecosystem and thriving start-up landscape. While technology and BFSI sectors remain the primary demand drivers, retail, aerospace, semiconductor, and life sciences companies are establishing niche GCCs, it added.
As per the report, Karnataka’s upcoming GCC policy is expected to catalyze GCC setups and job creation in the city.
