Global Capability Centres (GCCs) will occupy around 35 percent of all commercial real estate in India in 2024, while information technology companies will occupy around 16 percent, as per a report by real estate consultancy firm Knight Frank.
In 2022, GCCs held around 26 percent of the real estate in India, while that of IT companies stood at 16 percent, the same as the outlook for 2024, the report prepared by Knight Frank in association with 3AI showed, released on July 26.
This prediction comes at a time when GCCs have seen tremendous growth, both in export revenue and employability potential. On July 22, India's Economic Survey 2024 revealed that GCCs by multinational companies are set to contribute roughly 3.5 percent of India’s GDP by 2030, generating an estimated revenue of $121 billion by then.
Also read: By 2030, GCCs will bring $121 bn in revenue, driving 3.5% of India’s GDP
In comparison, GCCs occupied around 35 percent of all commercial real estate in India in 2023, while IT companies occupied around 11 percent in the same period.
"The development of new GCCs specially catering to the manufacturing sector has increased on a year-on-year basis and the talent landscape mainly in the technology sector has evolved over the years to meet the growing demand for new GCCs,” Rahil Gibran, National Director, Occupier Strategy and Solutions, Bengaluru, Knight Frank India said.
The report launched at the GCC X Summit 2024 reveals that GCCs will have 21.83 million square feet (mn sq ft) of office space absorption by the end of 2024, out of the total 70 mn sq ft absorbed by Indian companies.
"The growth of GCCs highlights India's potential to enhance processes and drive business innovation," the report read.
The IT/ITeS sector GCCs lead the chart followed by BFSI and Consulting GCCs. For BFSI, Mumbai leads with the highest percentage of GCCs under the BFSI sector and Bengaluru leads with the highest percentage of GCCs in the IT/ITeS sector.
It also shows that around 80 percent of the GCCs in India are currently servicing international-facing clients.
"India's GDP growth continues to be the fastest among major economies in the world, attracting attention for its strong infrastructure, and a consistent influx of top-tier talent and corporate entities. In the dynamic landscape of global business," Shishir Baijal, Chairman & Managing Director, Knight Frank India, was quoted as saying in the release.
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