+
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

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?