GCCs drive office leasing in India, 37 pc share across top 9 cities in H1 2024

New Delhi [India], July 4 : At the back of robust economic activities in the country, the Global Capability Centres (GCCs) accounted for 37 per cent of the total office leasing in the first half of 2024, CBRE India Office Figures Q2, 2024 report highlights.
The CBRE's report further noted that the overall office leasing deals remained strong in the country, with gross office leasing touching 32.8 million sq. ft. during Jan-Jun' 2024. This was an increase of 14 per cent year-on-year basis across the top nine cities of India.
Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad are the cities where office leasing activities increased during the first half of the current year.
Bengaluru had the highest share of office leasing at 39 per cent, followed by Pune at 20 per cent. Hyderabad and Chennai shares are 17 per cent and 11 per cent respectively.
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said, "Towards the later part of 2024, the demand for quality office spaces is poised to remain strong as portfolios expand and utilisation rates rise. India's appeal, supported by a skilled workforce and stable governance, continues to drive transformative shifts in the office sector, marked by diversified tenant demand and economic resilience. The technology sector is likely to continue to lead leasing, alongside anticipated growth in BFSI and Engineering & Manufacturing sectors. As confidence builds and infrastructure advances, Tier-II cities such as Ahmedabad, Coimbatore, Indore, and Nagpur may witness strategic expansions, underscoring India's dynamic office market evolution."
Bengaluru led office space absorption with about one-fourth of the total leasing during Jan-Jun' 2024. It was followed by Delhi-NCR at 16 per cent, Chennai at 14 per cent, Pune and Hyderabad each contributing 13 per cent. Bengaluru, Hyderabad, and Mumbai led supply additions, collectively accounting for 69 per cent of the total in the same period.
The report indicates technology companies saw the highest share and accounted for 28% of the total office leasing, followed by flexible space operators at 16 per cent, BFSI firms at 15 per cent, engineering and manufacturing (E&M) at 9 per cent and research, consulting and analytics firms (RCA) at 8 per cent during Jan-Jun '24.
Additionally, domestic firms led absorption, comprising 43 per cent of the market during Jan-Jun '24. Flexible space operators, technology firms, and BFSI corporates predominantly drove domestic leasing activity in the first half of 2024.
GCCs are established by organisations worldwide to make use of global talent, resources, and expertise. They are typically part of larger corporations and provide a range of services such as research and development, IT services, business process outsourcing, and engineering services, among other functions.