India's GCC Leasing Set to Drive 40% of Office Demand
Real Estate

India's GCC Leasing Set to Drive 40% of Office Demand

India's Global Capability Centres (GCCs) have emerged as key players in the nation's office leasing landscape, showcasing robust growth during the first quarter of the fiscal year 2025. According to recent data, GCCs leased an impressive 5 million square feet, accounting for 37% of total office leasing across India's top six cities.

The momentum is expected to continue, with projections indicating that GCCs will occupy between 45-50 million square feet of office space over the next two years, constituting approximately 40% of total demand. This heightened activity is fueled by a diverse range of occupiers spanning sectors such as banking, financial services, technology, engineering, manufacturing, and healthcare. Additionally, there is a notable preference for green-certified Grade A office spaces among GCCs.

Sub- and near-dollar micro-markets have been instrumental in driving GCC space uptake, contributing nearly 80% of leasing activity between 2019 and 2023. This trend underscores the significance of these micro-markets in accommodating the evolving needs of GCCs in India.

Vimal Nadar, Senior Director and Head of Research at Colliers India, emphasized India's position as a premier GCC hub in the Asia-Pacific region, highlighting factors such as a robust talent pool, strategic location, and commitment to sustainability as key drivers of this trend.

The latest report from Colliers, titled "Expert Insights - Asia Pacific Office Markets April 2024," revealed a 4-8% year-on-year rise in rentals across India's prime office markets in the first quarter. This growth, propelled by strong demand and high-quality supply, indicates a resurgence in the office market despite pandemic-induced challenges.

Arpit Mehrotra, Managing Director of Office Services at Colliers India, noted that office occupiers are adapting to market dynamics by embracing cost-optimization strategies such as the hub-and-spoke model and expanding flexible space portfolios. Suburban and peripheral areas offering affordability are witnessing heightened demand, reflecting a preference for cost-effective solutions.

Flexible spaces, particularly with the rise of core-plus-flex models, are gaining prominence, constituting 8.7 million square feet of leasing in 2023 alone. This segment is expected to continue its momentum in 2024, comprising 15-20% of total office leasing across India's top six cities.

The Colliers report outlined six priorities for achieving cost efficiency in office real estate, including aligning office strategy with business goals, maximizing lease negotiations, and prioritizing energy-efficient systems and upgrades.

India's thriving office market, driven by GCCs and evolving occupier preferences, reaffirms the nation's position as a key player in the global business landscape.

India's Global Capability Centres (GCCs) have emerged as key players in the nation's office leasing landscape, showcasing robust growth during the first quarter of the fiscal year 2025. According to recent data, GCCs leased an impressive 5 million square feet, accounting for 37% of total office leasing across India's top six cities. The momentum is expected to continue, with projections indicating that GCCs will occupy between 45-50 million square feet of office space over the next two years, constituting approximately 40% of total demand. This heightened activity is fueled by a diverse range of occupiers spanning sectors such as banking, financial services, technology, engineering, manufacturing, and healthcare. Additionally, there is a notable preference for green-certified Grade A office spaces among GCCs. Sub- and near-dollar micro-markets have been instrumental in driving GCC space uptake, contributing nearly 80% of leasing activity between 2019 and 2023. This trend underscores the significance of these micro-markets in accommodating the evolving needs of GCCs in India. Vimal Nadar, Senior Director and Head of Research at Colliers India, emphasized India's position as a premier GCC hub in the Asia-Pacific region, highlighting factors such as a robust talent pool, strategic location, and commitment to sustainability as key drivers of this trend. The latest report from Colliers, titled Expert Insights - Asia Pacific Office Markets April 2024, revealed a 4-8% year-on-year rise in rentals across India's prime office markets in the first quarter. This growth, propelled by strong demand and high-quality supply, indicates a resurgence in the office market despite pandemic-induced challenges. Arpit Mehrotra, Managing Director of Office Services at Colliers India, noted that office occupiers are adapting to market dynamics by embracing cost-optimization strategies such as the hub-and-spoke model and expanding flexible space portfolios. Suburban and peripheral areas offering affordability are witnessing heightened demand, reflecting a preference for cost-effective solutions. Flexible spaces, particularly with the rise of core-plus-flex models, are gaining prominence, constituting 8.7 million square feet of leasing in 2023 alone. This segment is expected to continue its momentum in 2024, comprising 15-20% of total office leasing across India's top six cities. The Colliers report outlined six priorities for achieving cost efficiency in office real estate, including aligning office strategy with business goals, maximizing lease negotiations, and prioritizing energy-efficient systems and upgrades. India's thriving office market, driven by GCCs and evolving occupier preferences, reaffirms the nation's position as a key player in the global business landscape.

Next Story
Real Estate

Dharavi Rising

Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government..

Next Story
Real Estate

MLDL Records 20.4% Growth in Pre-Sales

Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure development arm of the Mahindra Group, announced its financial results for the quarter ended March 31, 2025. In line with INDAS 115, the company recognises revenues using the completion of contract method. Key highlights FY25: Consolidated sales (Residential and IC&IC) of Rs 32.99 billion. Gross development value (GDV) additions in FY25 were Rs 1.81 trillion compared to Rs 440 billion in FY24 (~4x growth). Residential pre-sales of Rs 28.04 billion in FY25, reflecting 20.4% growth o..

Next Story
Infrastructure Transport

UCSL Delivers India's First Green Cargo Vessel to Norway

In a landmark achievement for Indian shipbuilding and the Atma Nirbhar Bharat initiative, Udupi Cochin Shipyard Limited (UCSL), a subsidiary of Cochin Shipyard Limited (CSL), has delivered the first of six next-generation green cargo vessels to Norway-based Wilson Ship Management AS, Europe’s largest short-sea shipping operator. The 3,800 DWT vessel, named Wilson Eco 1, was handed over during a ceremony at New Mangalore Port. The delivery is part of a Rs 5.06 billion project supported by Norway’s green maritime funding programme, marking India's entry into the European eco-friendly ca..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?