Global Capability Centres (GCCs) have leased 53 million sq. ft. of office space in India from 2022 to mid-2024, with Bengaluru leading at 40% market share. GCCs accounted for 37% of total office leasing activity in the first half of 2024, driven by increases in the BFSI sector, which rose to 22% of the market. Bengaluru's success is attributed to its large tech workforce and start-up ecosystem, while Hyderabad, Chennai, and Pune also saw significant leasing. The demand for engineering, IT, and BFSI skills highlights India's growing role as a key global business hub.
Global Capability Centres (GCCs) in India have leased 53 million square feet (msf) of office space from 2022 to the first half of 2024. Bengaluru is at the forefront, followed by Hyderabad and Chennai. The total office leasing activity in India saw GCCs accounting for about 37 percent in the first half of 2024.
In particular, Banking, Financial Services, and Insurance (BFSI) GCCs saw an increase, rising to 22 percent of the leasing market. This was driven by significant leases from global banking and insurance firms in Mumbai, Bangalore, and Pune. Additionally, technology companies have leased around 15 msf of office space over the past two-and-a-half years.
Anshuman Magazine, Chairman & CEO of CBRE India, pointed out that GCCs are now crucial for digital transformation and product excellence. He emphasised that India's talent pool is becoming a global solution, with further growth expected from the life sciences, automobile, and aerospace sectors.
Bengaluru has solidified its position as the leader in GCC office leasing, commanding 40 percent of the market share from 2022 to June 2024, with around 21.2 msf leased. The city benefits from a large technology workforce and a thriving start-up ecosystem.
Following Bengaluru, Hyderabad has a 21 percent share of the GCC leasing market, with about 11.13 msf leased. Chennai saw around 7.42 msf, and Pune about 6.36 msf, leased during this period. Delhi NCR and Mumbai witnessed 4.77 msf and 2.12 msf of GCC leasing, respectively.
For Mumbai's real estate brokers, this is an exciting time. The surge in office space leasing by GCCs highlights India's growing importance as a global business hub. In Mumbai, the BFSI sector is particularly strong, showing great potential for future leases.
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 sq. ft. 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. Pune remains a key player, attracting interest with its competitive real estate costs and diverse talent base. 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.
Bengaluru's success story, driven by a strong tech workforce, is something to aspire to. 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 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.
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