CBRE report, ‘India’s Global Capability Centres-charting a new technology era,’ sheds light on the burgeoning growth of GCCs in the country, their leasing preferences, and the primary factors fueling their expansion.
Published Date – 04:36 PM, Thu – 16 November 23
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Hyderabad: Hyderabad has retained its position among the top three cities driving space absorption by Global Capability Centres (GCCs) during the first half of 2023, according to a report by CBRE South Asia Pvt. Ltd.
The report, ‘India’s Global Capability Centres-charting a new technology era,’ sheds light on the burgeoning growth of GCCs in the country, their leasing preferences, and the primary factors fueling their expansion.
It highlights that from January to June 2023, the GCCs leased approximately 1.4 million sft in Hyderabad and the key micro markets during this period were identified as IT Corridor II and Extended IT Corridor. Between January to June 2023 and the preceding year, GCC leasing in the city amounted to 6 million sft with the tech sector comprising 35 per cent of the total share.
The growth of GCCs in Hyderabad is attributed to several factors such as the availability of abundant talent, improving standards of living, comparatively lower costs, and proactive government initiatives. The report stated that these factors have attracted GCC activity from diverse sectors like technology, life sciences, and consulting services.
The report also forecasts a robust pipeline of new developments in emerging micro markets across Hyderabad, Delhi, Bangalore, Mumbai, Chennai, and Pune from 2023 to 2025. These developments are anticipated to create fresh hubs for activity, focusing on quality investment-grade office supply.
Ram Chandnani, Managing Director of Advisory & Transactions Services at CBRE India, said, “Most GCCs in India continue to adopt a hybrid workstyle, they will likely continue to take up large office space to enhance collaboration and innovation – key performance enablers for most GCCs. We believe that the incremental growth over the next two-three years will continue to be across the top metro cities.”
The report’s statistics reveal that Hyderabad accounted for a 20 per cent share of GCCs leasing in the office sector from 2022 to the first half of 2023, amounting to 6 million square feet in office space leasing.
