Top Southern Cities Dominate GCC Office Leasing with 64% Overall Share in Q1 2025 - ANAROCK
- Of total 8.35 Mn sq. ft.
gross office spaces leased by Global Capability Centres (GCCs) in Q1 2025
in top 7 cities, Bengaluru, Chennai & Hyderabad collectively leased
approx. 5.34 Mn sq. ft.; Delhi-NCR saw 1.95 Mn sq. ft. gross office space
leased to GCCs
- Gross leasing of overall
office space in top 7 cities at 19.47 Mn sq. ft. in Q1 2025, with GCCs
comprising a 43% share (8.35 Mn sq. ft.)
- In Q1 2024, GCCs leased
approx. 4.87 Mn sq. ft. space - a 72% yearly jump
- IT/ITeS held a 35% share of
overall GCC leasing this year, followed by BFSI with 22%, &
manufacturing & industrial with 13%
- The top 7 cities together
had 1,700+ GCCs by 2024-end, with a market value of approx. USD 52 Bn
& housing 1.70-1.80 Mn working professionals
- Amid high demand, total no.
of GCCs in top cities may hit 2,200-2,300 by 2030 with a market size of
USD 100-110 Bn & 2.4-2.8 Mn employees
- Mid-sized GCCs for
1,000-2,000 employees appear to dominate upcoming influx in India
Mumbai,
20 May 2025: Global Capability
Centres (GCCs) have been ramping up their presence on India’s commercial real
estate landscape in the last few years, with government initiatives announced
in the Union Budget further accelerating this trend. The top cities are
witnessing escalating demand from both new GCC entrants and those expanding
their existing operations.
Latest
ANAROCK data shows the top southern cities – Bengaluru, Hyderabad, and Chennai
- dominating GCC office space leasing in Q1 2025 with a 64% overall share.
Approx. 8.35 Mn sq. ft. gross office space has been leased by GCCs in Q1 2025
across the top 7 cities
Peush
Jain, MD - Commercial Leasing & Advisory, ANAROCK Group, says, "GCCs in Bengaluru,
Chennai and Hyderabad collectively leased approximately 5.34 Mn sq. ft. of
gross office space in Q1 2025, followed by Delhi-NCR which saw 1.95 Mn sq. ft.
gross office space leased to GCCs. Of the gross office space leasing of 19.47
Mn sq. ft. recorded in the top 7 cities in Q1, GCCs accounted for about 8.35 Mn
sq. ft. - a 43% overall share. In Q1 2024, they had leased about 4.87 Mn sq.
ft. In short, there has been a 72% annual jump in their office space
absorption."
City-wise
data indicates that Bengaluru leads in gross leasing by GCCs in Q1 2025 with a
40% share, or approx. 3.3 Mn sq. ft., followed by Delhi-NCR with a 23% share -
or approx. 1.91 Mn sq. ft. and Chennai with 1.22 Mn sq. ft., or a 15% share.
"In
retrospect, ANAROCK data of Indian office markets indicates that the top 7
cities saw gross leasing of over 141.43 Mn sq. ft. of office space in the last
two years – 2023 and 2024. Of this, GCCs alone leased about 52.88 Mn sq. ft.,
accounting for a share of over 37% share.
|
Gross Office Leasing by GCCs in Top 7
Cities (in Mn Sft.) |
||
|
Cities |
Q1 2024 |
Q1 2025 |
|
Bangalore |
2.82 |
3.3 |
|
Hyderabad |
1.22 |
0.82 |
|
Delhi-NCR |
0.49 |
1.91 |
|
Mumbai |
0.24 |
0.6 |
|
Pune |
0.10 |
0.45 |
|
Chennai |
0 |
1.22 |
|
Kolkata |
0 |
0.05 |
|
Total |
4.87 |
8.35 |
Source: ANAROCK Research
Sector-wise Analysis
Of
the overall GCC leasing of 8.35 Mn sq. ft. office space in top 7 cities in Q1
2025, IT/ITeS held the lion’s share with 35%. BFSI came next with a 22% share,
followed by manufacturing & industrial with 13%. E-commerce held a 6%
share, and consultancy businesses had a share of 5%. The remaining 19% were
leased by miscellaneous sectors. Notably, though IT/ITeS continues to dominate
overall GCC leasing, other sectors like BFSI and manufacturing & industrial
are also gaining ground.
“Driven
by India’s rising economic influence over the last two to three years, GCCs are
deploying not just in the top 7 cities but also in various Tier 2 & 3
cities, including Ahmedabad, Kochi, and Coimbatore," says Peush Jain.
"This is due to a combination of factors, including a growing skilled
workforce beyond the metros, cost competitiveness, supportive government
policies, and concerted infrastructure development in Tier 2 and Tier 3
cities."
Unlike in
the pre-Covid period, when most of them were largely eyeing the IT/ITeS and
BFSI sectors, GCCs' focus is now spreading out into other sectors including
manufacturing and industrial. A significant share of Indian GCCs is
headquartered in the US, followed by Europe and the Middle East.
"ANAROCK
data shows that out of 28.23 Mn sq. ft. office space leased by GCCs in 2024 in
the top 7 cities, 65% were headquartered in the US, followed by 28% in Europe
and the Middle East, and just 7% in the Asia-Pacific (APAC) region," says
Jain.
- There were over 1,700 GCCs
operating in across the top 7 cities India by 2024-end. Their cumulative
market value is estimated at approx. USD 52 Bn
- These GCCs host anywhere
between 1.70-1.80 Mn professionals
- Given current momentum, the
end of 2025 may see over 1,900 GCCs operating across the country, with a
market value of approx. USD 60-70 Bn, hosting approx. 1.9 Mn professionals
- By 2030, the estimated
number of GCCs operating in Indian cities is pegged at between
2,200-2,300, accounting for a market size of USD 100-110 Bn and hosting
2.4-2.8 Mn working professionals.
