Global Capability Centres to account for about 40% of office space absorption in 2025: CBRE

ANI April 5, 2025 174 views

Global Capability Centres are set to revolutionize India's office space landscape, accounting for 35-40% of total absorption by 2025. Multinational corporations are strategically leveraging India's robust talent pool to establish innovative technological hubs. Cities like Bengaluru, Hyderabad, and Mumbai continue to be prime locations for these centers. The trend reflects a significant shift in corporate strategies, with technology and digital transformation driving this expansive growth.

"Global corporations are increasingly capitalising on India's expansive talent pool" - CBRE Report
New Delhi, April 5: The Global Capability Centres (GCCs) are projected to account for about 35-40 per cent of the total office space absorption across the key cities in 2025, CBRE said in a report.

Key Points

1

Global tech firms accelerating GCC expansion in India

2

Tier-II cities emerging as strategic office locations

3

Technology sector leading office demand

4

Multinational corporations diversifying GCC investments

The report added that the state-specific policies designed to support the GCC expansion will encourage leasing growth in the smaller cities, complementing the activity observed in the established hubs.

Cities such as Bengaluru, Hyderabad, Chennai, Mumbai, Pune besides Delhi-NCR are the major hubs for GCCs in India.

The report by CBRE, a real estate consultancy company, added that the technology sector will lead the total office demand in the country, given its focus on pioneering advanced solutions.

GCCs within the BSFI (Banking, Financial Services, and Insurance) and Evaluation and Management (E&M) sectors will drive space take-up, with notable demand stemming from niche occupier groups, often actively pursuing digital transformation initiatives.

Additionally, as per the report, the semiconductors, aerospace, automobiles, and life sciences sectors are likely to exhibit strong GCC absorption levels.

Global corporations are increasingly capitalising on India's expansive talent pool, positioning their GCCs as strategic hubs or secondary headquarters to drive innovation, digital transformation, and the development of high-value capabilities.

The report added that the expansion of GCCs into multifunctional centres is expected to be fuelled by the consolidation of existing operations and the entry of the new firms, all of which are likely to contribute to the sustained leasing activity.

Talking about the major hubs, the report added that cities such as Bengaluru, Hyderabad and Mumbai besides Delhi-NCR will sustain their prominence in leasing activity.

The report added that in 2025, leasing demand will expand into tier-II cities as businesses seek strategic expansion opportunities.

The report highlights that while the US-based firms are anticipated to remain the dominant contributors to the GCC leasing activities in the country, the proportion of non-US corporations is projected to increase.

European and Asian firms are increasingly considering India as a strategic destination for establishing GCCs, drawn by the success of existing firms.

Reader Comments

R
Rahul K.
This expansion is great news for our economy! More GCCs mean more high-quality jobs and infrastructure development. Hope the growth spreads to tier-2 cities as predicted. 🇮🇳
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Priya M.
Interesting read, but I wish the report had more data on how this will impact local businesses and housing markets in these cities. Rapid commercial growth often leads to residential price spikes.
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Arjun S.
Worked in a GCC for 3 years - the work culture and exposure is unmatched! Happy to see India becoming a global innovation hub. Bangalore's tech scene is already world-class.
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Sanjana P.
Hope this growth comes with better urban planning! Our metros are already bursting at the seams with traffic and infrastructure challenges. Need sustainable development plans.
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Vikram J.
The semiconductor and aerospace sectors showing strong growth is particularly exciting. Shows we're moving beyond just IT services to advanced manufacturing R&D!
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Neha T.
As someone from Pune, I've seen first-hand how GCCs transform cities. But we need more focus on work-life balance - these jobs often come with odd hours to sync with global teams.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Global Capability Centres CBRE Indian Real Estate Technology Sector Office Space Corporate Expansion
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