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India’s commercial real estate sector saw strong growth in 2024, with Global Capability Centres (GCCs) leasing 22.5 million square feet, accounting for 31% of total transactions. Bengaluru led with 9.33 million sq. ft., followed by Hyderabad (5.06 million sq. ft.) and Chennai. Large office spaces dominated, with 50 deals exceeding 100,000 sq. ft. Government support for GCCs and India’s skilled workforce continue to attract global firms. While Chennai saw a 48% drop in GCC leasing, it remains a key market. With stable rents and a strong ecosystem, India’s commercial real estate market is set for sustained expansion.
India's commercial real estate sector experienced notable growth in 2024, with Global Capability Centres (GCCs) finalising 329 leasing deals across eight major cities. A report by Knight Frank India indicates that GCCs occupied 22.5 million square feet of office space, comprising 31 per cent of the year’s total leasing activity.Of these transactions, 50 large deals exceeding 100,000 square feet contributed 12.1 million square feet, while 56 mid-sized deals between 50,000 and 100,000 square feet accounted for 4.4 million square feet. Smaller deals under 50,000 square feet made up the remaining 5.5 million square feet, spanning 223 agreements. Advertisement
Bengaluru dominated GCC leasing with 100 deals, securing 42 per cent of total leased space. Chennai followed with 89 transactions, leading the sub-50,000 square feet category with 73 deals, compared to Bengaluru’s 66. In the mid-sized segment, Hyderabad recorded 15 deals, just ahead of Bengaluru’s 14.
For office spaces above 100,000 square feet, Bengaluru again led with 20 transactions, reaffirming its position as a prime GCC hub. While the southern cities—Bengaluru, Chennai, and Hyderabad—remained the most attractive for GCC operations, the National Capital Region (NCR) also saw 53 deals, with 38 in the small office category.
Bengaluru recorded the highest total GCC leasing at 9.33 million square feet, 66 per cent of which (6.18 million square feet) involved large office deals, reflecting a 191 per cent year-on-year rise in absorption. Hyderabad followed with 5.06 million square feet, where large office transactions accounted for 67 per cent (3.41 million square feet).
Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted that GCCs are becoming increasingly important in India’s commercial real estate market. He noted that the government’s recent budget announcement supporting state-level GCC promotion is likely to boost corporate interest in establishing these centres across key markets. With India's skilled workforce and cost-effective real estate, the country’s position as a leading GCC destination is expected to strengthen further.
Chennai, which saw a surge in 2023 due to a major Bank of America transaction, recorded a 48 per cent year-on-year decline in GCC leasing in 2024. The city's GCC transactions in 2023 totalled approximately 6 million square feet, impacting comparative figures for 2024. Despite this, Chennai remained a key market, with large office transactions accounting for 1.07 million square feet, smaller spaces for 1.48 million square feet, and mid-sized offices contributing about 600,000 square feet.
Viral Desai, Senior Executive Director at Knight Frank India, remarked that India offers a strong ecosystem for GCC expansion. He highlighted a skilled talent pool and progressive government policies that support seamless setup and operational efficiency. Additionally, India’s commercial real estate landscape, featuring Grade A office spaces with strong ownership structures, rivals leading global markets. With stable commercial rents in USD terms for over a decade, India remains a highly competitive and cost-effective choice for GCCs.
The growing demand for office space from GCCs underlines India’s increasing appeal as a strategic business hub. With continued government support and infrastructure enhancements, the commercial real estate market is expected to sustain its upward trajectory, further solidifying India’s position as a preferred destination for global enterprises.
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