by THO
Office leasing by Global Capability Centres in Chennai is expected to touch 3.2 mn sq ft by 2025 on the back of growing infrastructure, proactive state government policies, and quality office developments that are aligned to meet the needs of global corporates, a report by CBRE has said.
Chennai is estimated to have around 460 GCCs by 2030 as against 250 centres now because of supply of premium office space and availability of skilled talent, according to the report.
GCCs are offshore captive centres of multinationals that handle support operations such as back-office functions, IT assistance and customer relationship management, among others. Some large companies use GCCs as centres of excellence as well.
Between 2025 and 2026, the city is set to add 12–13 million sq. ft. of premium office space tailored to enhance employee experience and offer state-of-the-art amenities, the report titled ‘Tamil Nadu: The Next Frontier for Global Corporations’ has said.
Aligned to this growth, the GCC talent pool in Chennai is projected to grow by 1.4X, reaching 320-370k by 2030.
Chennai third in GCC leasing activity after Bengaluru and Hyderabad
Chennai is ranked third in GCC leasing activity in India after Bengaluru and Hyderabad during the period from 2022-9M 2024. The city has witnessed GCC office absorption increasing from 1.4 million sq. ft. in 2022 to 2.3 mn. sq. ft. in the first nine months of 2024.
This growth is fuelled by strong demand from corporates belonging to sectors such as engineering and manufacturing (33%), BFSI (27%), and tech (13%), the report said.
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US firms accounted for 67% of GCC setups between 2022 and 9M 2024. During the same time period, key micro-markets in Chennai viz., OMR Zone 1, MPH Road, and PT Road, cumulatively contributed to 92% of the overall city GCC leasing, cementing Chennai’s position as a global hub for corporate growth, the report said.
Overall office market in Chennai
Chennai is India’s fifth-largest office market, with more than 90 million sq. ft. of office stock as of 2024 (YTD). As per the report, total office stock in the city is expected to surpass 100 mn. sq. ft. by 2026. Campus-style developments and sustainable design approaches make the city a magnet for businesses prioritizing employee well-being and environmental consciousness.
GCC-focused incentives
Strategic policies like the Tamil Nadu Startup and Innovation Policy 2023 and R&D Policy 2022 enhance its attractiveness, while the payroll subsidy program for newly established GCCs incentivizes high-paying jobs, drawing substantial global investments and solidifying the city’s role as a hub for innovation and talent, the report showed.
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Tamil Nadu’s vision of becoming a $1 trillion economy by 2030 is underpinned by its strong industrial base and expanding services sector, including Global Capability Centers (GCCs).
Cities like Coimbatore, Madurai, and Tiruchirappalli are emerging as key hubs for manufacturing investments, providing significant opportunities for GCCs to drive innovation and product development.
“Tamil Nadu presents a compelling proposition for businesses seeking to establish or expand their global operations,” said Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE.
The state, with its attractive policy incentives, strong talent pool, robust corporate ecosystem, and abundant quality office space, has solidified its position as a preferred destination for these GCCs. Tamil Nadu currently hosts over 250 GCCs, contributing substantially to India’s GDP, he added.
