India expected to see 2,500 global capacity centers in next 4 years

Amid the rise of global capacity centers (GCCs) in India, the country is expected to see 2,500 such centers in the next four years, with office space likely to exceed 300 million sq ft, according to a new report.

India, with over 1,800 GCCs to date occupying 240 million square feet of Grade A office space across the country’s seven largest cities, is leading the GCC wave globally.

According to the report by JLL India, a real estate consultancy firm, since 2022, 100 new centers have been set up in the country in Mumbai, Delhi-NCR, Kolkata, Bengaluru, Chennai and Pune, among others.

Bengaluru alone accounts for around 42 per cent of the total space occupied by GCCs. Additionally, GCCs account for approximately 50 percent of active and ongoing space requirements in the seven largest cities. U.S.-based companies accounted for about 60 percent of the occupied space in the country.

According to Rahul Arora of JLL India, GCC countries in India are at the forefront of research and development in the areas of AI, machine learning and advanced manufacturing.

CCGs are no longer just service providers; they are becoming the nerve centers of global businesses, with Indian leaders securing a central role in shaping global business strategies. This shift underlines India’s emergence as a crucible of innovation, where multinational companies are forging their future, he noted.

Meanwhile, GCCs continued their strong momentum in India in the third quarter (Q3) with an overall contribution to the total gross rental volume (GLV) of 30 percent. GLV across the entire office sector reached 24.8 million square feet (MSF) across the top eight cities in the third quarter, marking the second-highest quarterly leasing volume in the sector’s history, according to Cushman & Wakefield’s.

This represents annual growth of 66.4 percent for GLV and strong quarterly growth of 14.3 percent, demonstrating overall healthy market dynamics. The GLV total crossed the 66.7 million MSF mark in nine months and is expected to exceed 80 MSF in 2024.

(Except for the headline, this story, taken from a syndicated feed, has not been edited by Odishatv.in staff)