(MENAFN- ForPressRelease)
Mumbai, January 29, 2025: India's office market continues to shine brightly, setting new highs aligned with a period of sustained growth and momentum. The numbers tell a compelling story. Leasing activity in the top seven cities skyrocketed to unprecedented levels of 77.2 million sq. ft in 2024 - a remarkable 22.6% Year-on-Year (Y-O-Y) increase from 2023's already historic high of 63 million sq. ft. At the epicentre of this extraordinary boom are Global Capability Centers (GCCs), a powerhouse occupier segment that continues to shape India's commercial landscape. They are market titans, not merely marking a presence but redefining India's office story. They truly epitomize India's status as 'office to the world'.
GCCs have charted a trajectory that is simply put 'explosive' and their role as the primary catalyst to the commercial market momentum shows no signs of abating. From 2016 to 2024, these global R&D and business transformation hubs have accounted for an impressive 40% of overall office leasing activity. The year 2024 was truly remarkable, with GCCs leasing ~28 million sq. ft, recording all-time high activity levels that represent a significant 15.2% Y-o-Y increase and further solidify their dominance in India's office markets. "The unprecedented 77.2 million sq. ft of office leasing in India's top seven cities in 2024, representing a 22.6% year-on-year increase, underscores the country's robust office market. Global Capability Centers (GCCs) have emerged as the backbone of this surge, accounting for 40% of overall office leasing from 2016 to 2024. This trend not only reflects India's rising status as the 'office to the world' but also signals a strong trajectory for sustained economic expansion and innovation in the coming years,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL
Bengaluru and Hyderabad are key clusters, but GCCs extending their footprint across major cities.
Bengaluru remains India's premier GCC hub, leveraging its established ecosystem to attract further investment and headcount growth. In 2024, the city captured 47% of the total GCC leasing demand nationwide, showcasing its continued leadership with consistently high space take-up by GCCs. Meanwhile, Hyderabad has emerged as a formidable contender in the GCC landscape, positioning itself as an attractive complementary location for companies seeking expansion. Interestingly, GCCs, chasing talent and innovation clusters have shown significant interest in Chennai, which exhibits the strongest growth in the last three years. Momentum remained strong in Delhi NCR and Pune as well. The GCC footprint expansion across key cities is clearly indicative of their deep understanding of India's tech ecosystem and the ability to analyse key factors around talent availability. It also shows their deep commitment and understanding of India being central to their growth plans.
"Bengaluru continues to reign supreme as India's GCC powerhouse, capturing an impressive 47% of total GCC leasing demand in 2024, while also driving overall office market growth. This dominance reflects the city's crucial role in India's unprecedented office leasing of 77.2 million sq. ft across top seven cities in 2024, a 22.6% year-on-year increase. With over 1,950 GCC units in India as of December 2024 and projections to exceed 2,500 in the next 3-4 years, Bengaluru's leadership is pivotal in shaping India's commercial real estate sector. GCCs currently account for more than one-third of the occupied office stock in India's top seven markets, contributing significantly to the overall office ecosystem. Their footprint is poised to surpass 300 million sq. ft in the coming years, underscoring the symbiotic relationship between GCC expansion and overall office market growth, particularly in tech hubs like Bengaluru," Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
GCC story unfolding across industry segments.
The GCC leasing landscape shows significant diversification. Building upon the tech ecosystem, the talent story is now being explored across industry segments. While tech occupiers have historically dominated GCC leasing activity, ER&D (industrial and manufacturing) and BFSI are segments that have shown a rapid pace of growth. The share of ER&D (manufacturing/industrial) has more than doubled in the last three years, indicating a rapidly evolving segment, building on India's manufacturing push. BFSI has seen its share and quantum of leasing activity jump 1.5X compared to the pre-COVID three-year period. Healthcare & biotech has been another growing sub-segment in the past few years, again indicative of India's strong push in this sector.
Beyond the numbers: India's ascent as 'office to the world'
The office market momentum story is part of a larger narrative, driven by the significant tech talent pool and relatively lower costs – both for human capital and real estate. India's evolution and well-established credentials as the world's offshoring capital makes it an indispensable geography for global firms seeking headcount augmentation and capacity growth.
As of December 2024, there over 1,950 GCC units in the country, accounting for more than one-third of the occupied office stock in the top seven markets of India. Yet, the runway of growth is still longer - ~70% of the Global 500 companies (excluding India-headquartered firms) are yet to establish a presence in India. This untapped demand is a sustained one, with GCCs in India working on the highest levels of the value chain, undertaking work processes which are intrinsic and of the highest calibre.
The coming years promise an exciting journey as more companies actively look to harness India's growth-favoring ecosystem, while existing players execute their expansion plans across the country. The number of GCC units is expected to exceed 2,500 over the next 3-4 years, with their footprint poised to surpass the 300 million sq. ft mark.
As we stand on the edge of the runway to this new normal, it is evident that GCCs have become the very bedrock of India's office market, not just driving demand, but igniting innovation and fuelling economic growth. As they continue to evolve and expand, their impact on the commercial real estate sector promises to deepen, sculpting the future of work in India.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.
About JLL India
JLL is India's premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 15,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education.
User :- Lakshman Babu
Email :...
MENAFN29012025003198003206ID1109142709
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.