GCC expansion to drive next wave of office demand beyond tier-I cities: Report
The rise of Global Capability Centres is reshaping the demand for office spaces, reaching beyond major metropolitan areas. With plans to create additional centres and job opportunities by 2031, these facilities are increasingly opting for larger, more advanced spaces. As emerging cities present lower costs and a skilled workforce, their expansion hinges on effective policies and robust…
The Global Capability Centres (GCC) market in India is poised for significant growth beyond established commercial hubs, according to a report by CBRE. The state-level initiatives to expand GCCs are expected to create over 1.18 million jobs by 2029-31, with nearly 1,380 new centres being established across the country. As of now, Bengaluru, Hyderabad, Chennai, Delhi-NCR, and Pune dominate GCC activity, but the expansion is anticipated to reach tier-II and tier-III cities, driven by lower costs, a pool of engineering talent, and policy incentives.
Currently, 94% of India's 2.36 million GCC professionals are concentrated in six tier-I cities, leaving ample opportunity for emerging locations to attract new centres. This shift could lead to an increase in demand for larger office spaces, as transactions exceeding 100,000 sq ft are becoming more common in GCC leasing activity, with average deal sizes growing by 18-20% since 2023.
The GCC market is diversifying, with a substantial focus on technology, banking, financial services and insurance (BFSI), and engineering and manufacturing sectors. GCCs are also expanding beyond traditional back-office functions, increasingly engaging in research and development, artificial intelligence, data, cybersecurity, and product development. Over half of India's GCCs have evolved into portfolio and transformation hubs, while around 90% operate as multi-functional units.
The next phase of GCC growth will rely not only on policy incentives but also on faster execution, improved infrastructure, the availability of large-format office assets, and a stronger talent pipeline in emerging cities.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
