GCC share in commercial real estate is on the rise

Mar22,2024



Bengaluru: Share of foreign companies in overall Global Competence Centers (GCC) office space Leases are continuously increasing in India. colliersA real estate management firm says the space is leased gcc 2023 is the highest since 2020.
The firm says GCCs – technology and shared services arms of multinational companies – have become an important part of commercial real estate since the pandemic. In the decade before that, IT companies dominated. Nearly 17 million square feet of land was leased by GCC in 2020, Colliers data shows. This will decrease to 15 million in 2021 and increase to 19 million in 2022. Last year, it grew 14% to 21.1 million. This was 37% of the total 58 million office space leased by companies. Colliers believes this could go up to 40% in the next 24 months.
There are over 1,600 GCCs in India, and this financial year, they have made significantly more hires than IT services, which has traditionally been the largest recruiter of white-collar professionals. Real estate firm Cushman & Wakefield said in a recent report that India's commercial real estate growth in recent times has been largely driven by the GCCs, and will be dominated by them over the next few years. “GCCs continued to expand and more than 80 GCCs were either newly established or expanded during the year,” the report said. Real estate consultancy Knight Frank's recent India real estate, residential and office market report said the GCC was the only segment in the commercial sector that grew in 2023. All other segments such as flex space or co-working spaces and third-party IT firms have seen growth. a decline. The firm says Deloitte, Qualcomm, MUFG Bank, Bank of America, Citibank and Fidelity were some of the big captors in 2023.
“While GCCs have traditionally been looking for private spaces, they are now moving towards flex spaces,” says Arpit Mehrotra, MD, office services at Colliers India. “5% to 10% of the flex space is now occupied by GCC,” he says.



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