by THO
Global Capacity Centres (GCC) focused transactions dominated more than half of the office volume deals in Chennai during 2023, totalling 6.02 mn sq ft across 71 deals, a report by Knight Frank India said.
The Banking, Financial Services, and Insurance (BFSI) segment is the frontrunner in GCC-oriented office space transactions. Despite only six deals throughout the year, the BFSI sector contributed over 30% of GCC transactions in Chennai, leasing a substantial 1.89 million square feet in 2023, the report said.
The manufacturing sector emerged as the second-largest occupier of GCC business-oriented office space in Chennai’s commercial market, with transactions totalling 1.78 mn sq ft in 2023. Other Service Sectors recorded 26 GCC-oriented deals, representing the highest number of transactions during the same period, it said.
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Of all the GCC deals observed across eight major commercial markets in India during 2023, Chennai accounted for almost 29%, further solidifying its position in the GCC landscape. This momentum marks a significant leap from the 57 deals recorded in 2022, totalling 2.18 mn sq ft.
GCCs or global in-house centres or captives, are offshore units of large multinationals performing technology operations.
“GCCs dominated as an end user occupier profile accounting for more than half of the office volume transactions in Chennai during the year 2023. Tamil Nadu R&D Policy 2022 has meaningfully aided in accentuating GCC investments in the state, especially Chennai,” said Viral Desai, Senior Executive Director, Senior Executive Director Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India.
