Leasing by Global Capability Centres crosses 29 msf in CY 2024

Global Capability Centres (GCC) maintained strong leasing in 2024 at 29.4 mn sq ft with a share of 37% of the overall leasing activity across the top 9 cities in India and registering about 29% YoY growth, according to a CBRE report, ‘CBRE India Office Figures Q4 2024’.

Global firms have actively established and expanded their GCC operations by capitalising on the country’s skilled talent pool and a favourable business climate. This growth momentum is expected to persist into 2025, with new entrants setting up global centres and existing firms scaling their facilities. Companies from sectors including Technology, Engineering & Manufacturing and BFSI would likely drive demand for both traditional and flexible office spaces for their GCCs, with continued demand from niche sectors such as automobile, semiconductors, and life sciences.

In the Oct-Dec’24 period, GCC leasing represented 34% of the total leasing activity, amounting to 7.6 mn. sq. ft. Bengaluru led the GCC leasing segment with a 34% share, followed by Hyderabad at 20%, Delhi-NCR at 12%, Mumbai at 11%, Pune at 10%, and Chennai at 9%. Ahmedabad, Kolkata and Kochi together accounted for 4% of the GCC leasing in Q4 2024.

On a pan-India basis, overall, office leasing recorded a historic high of 79 mn. sq. ft. in 2024 across nine cities. The absorption marked a 16% Y-o-Y growth, setting a new benchmark for leasing activity. Total supply during CY 2024 stood at 52.3 mn. sq. ft.

Bengaluru dominated office space absorption during the year, accounting for approximately 28% share of the total, followed by Hyderabad with 16% and Mumbai with 15% share. In 2024, approximately 52.3 mn. sq. ft. of new office space was completed, with Bengaluru, Hyderabad, and Pune collectively accounting for 67% of the total supply addition.

Technology sector accounted for 24% of the total leasing activity, followed by flexible space operators at 19%, BFSI firms at 16%, and engineering and manufacturing companies at 9%.

Domestic firms continued to lead the space take-up in CY 2024, accounting for 45% of the total office space absorption, followed by companies from the Americas at 34%, EMEA at 16%, and APAC at 5%. The leasing activity by Indian firms was predominantly driven by flexible space operators, technology companies, and BFSI corporates.

On a quarterly basis, office leasing touched the highest ever in Oct-Dec’24 at 22.2 mn. sq. ft. Mumbai, followed by Hyderabad and Bengaluru led the absorption, together accounting for about 66% of the space take-up. In the Oct-Dec’24 period, supply reached 16.1 mn. sq. ft., with Hyderabad, Bengaluru, and Pune contributing to much of the supply addition, collectively accounting for approximately 69%.

In the quarterly breakdown, technology companies led office leasing with a share of 26%, followed by flexible space operators (21%), BFSI firms (17%), research & consulting companies (10%), engineering & manufacturing corporates (9%), life sciences firms (7%), and others (11%).

The report indicates that in the Oct-Dec’24 period, leasing in green-certified assets accounted for 56% of total leasing activity, while the green-certified supply share was noted at 45%. Hyderabad led the leasing activity in green-certified spaces with a 27% share, followed by Bengaluru at 21%, Mumbai at 19%, Delhi-NCR at 12%, Pune at 10%, Chennai at 9%, and Ahmedabad and Kolkata each at about 1% share.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “As we look towards 2025, the office sector in India is poised for continued growth, underpinned by sustained demand from a broad range of industries. The momentum seen in 2024 is expected to persist, with technology, BFSI, and engineering sectors, along with global capability centers (GCCs), driving the need for both traditional and flexible office spaces. Companies are increasingly prioritizing operational efficiency, which would further enhance demand for premium, future-ready assets that are designed to foster employee well-being and provide a competitive edge in talent retention.”

Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India, said, “India’s office leasing market is expected to build on the strong foundation laid in 2024, with GCCs continuing to play a pivotal role in shaping demand. As we move into 2025, we foresee global firms expanding their operations in India, attracted by the nation’s skilled workforce and favourable business environment. Alongside this, sectors such as technology, BFSI, and emerging markets would further influence office leasing trends. The growing focus on sustainability and green-certified office spaces would drive the development of investment-grade assets, reinforcing long-term market stability and growth.”