In 2023, Bengaluru led Global Capability Centres (GCCs) office space leasing with 15.34 million square feet, commanding a 53% share in the IT/ITeS sector. This positions Bengaluru ahead of other major cities like Mumbai and Hyderabad. The GCC sector's leasing activity is projected to grow to 26 million square feet by 2027, marking a 16% increase from 2018 levels. Despite a global economic slowdown, GCCs continue to thrive, with revenues expected to hit USD 46 billion by 2024. The number of GCCs in India rose from 1,250 in 2019 to about 1,600 in 2023, potentially reaching 2,525 by 2030.
In 2023, Bengaluru led the charge in Global Capability Centres (GCCs) office space leasing, absorbing over 15.34 million square feet (msf), according to Knight Frank India's latest report. This positions Bengaluru at the forefront of GCC expansion among the top eight cities, including Hyderabad, Chennai, Ahmedabad, Pune, Mumbai, NCR, and Kolkata.
Bengaluru's dominance extends beyond sheer volume; it holds a 53% share of GCCs in the IT/ITeS sector. In contrast, Mumbai is the leader in the BFSI sector with a 35% share. This reflects the cities' strategic roles in their respective sectors and highlights the growing importance of GCCs in India's commercial real estate market.
The report also forecasts significant growth in GCC office leasing. By 2027, office leasing by GCCs is expected to reach 26 msf, up from 19.69 msf in 2023. This represents a 16% increase in transaction activities since 2018, with GCCs completing 6,667 office leasing deals across the eight major cities between 2018 and 2023.
Despite a brief slowdown in Bengaluru's IT sector due to global economic conditions, GCCs have continued to drive leasing activity. According to Ernst and Young, the total revenue generated by GCCs in India is expected to reach $46 billion by the end of 2024.
The number of GCCs in India has also been on the rise, from 1,250 in 2019 to approximately 1,600 in 2023. The report projects a potential increase to around 2,525 by 2030 if industry-friendly policies and a stable government are in place. However, if market conditions worsen, the number of GCCs might reach about 2,006 by the same year.
In conclusion, the strong performance of GCCs in Bengaluru and other major cities underscores the sector's growing influence on the Indian real estate market. The anticipated growth in leasing activity and revenue highlights the increasing role of GCCs in driving economic development and shaping the future of commercial real estate in India. As the sector continues to expand, it will be crucial for stakeholders to stay informed about market trends and policy changes that could impact their strategic planning and investment decisions.
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