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
Infrastructure Urban

Statiq and HPCL Partner to Boost EV Charging Network Across India

In a major step towards building a robust electric vehicle (EV) charging ecosystem in India, Statiq is proud to announce its partnership with Hindustan Petroleum Corporation (HPCL), one of the country’s leading oil marketing companies. Under this strategic collaboration, Statiq will onboard HPCL’s entire charging network — both existing and upcoming — onto the Statiq mobile app through its flagship EVLinq platform.This integration adds over 5,100 chargers from HPCL’s network, including 2,900 DC fast chargers, to Statiq’s platform, significantly strengthening one of India’s larges..

Next Story
Infrastructure Transport

CM Unveils Common Mobility Card for Metro Line 3 Commuters

Starting June 11, passengers on Mumbai Metro’s underground Metro 3 line—operational between Aarey-JVLR and Acharya Atre Chowk—can now use the National Common Mobility Card (NCMC) for seamless, contactless travel. The Mumbai Metro Rail Corporation (MMRC), responsible for constructing, operating, and maintaining Metro 3, has enabled this functionality to simplify the commuter experience.The NCMC card, launched at Mantralaya in the presence of key state leaders, allows commuters to tap and travel without waiting in queues at ticket counters. This move extends the card’s usability beyond M..

Next Story
Infrastructure Transport

Centre Fast-Tracks Rs 111.50 Bn for 3 New Delhi Metro Corridors

The Central government has advanced plans for three new metro corridors in Delhi under the PM GatiShakti infrastructure framework, with a total proposed investment of approximately Rs 111.50 billion. The corridors include R K Ashram to Indraprastha, Aerocity to Terminal-1, and Tughlakabad to Kalindi Kunj.Together spanning over 16 km, these projects have recently been reviewed by the National Planning Group and are expected to be placed before the Cabinet for approval.Among the proposed routes, the R K Ashram to Indraprastha corridor will be the longest and fully underground, comprising nine st..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?