Global capability centres (GCCs) took up nearly 23,000 seats from coworking space operators in India during the first nine months of the ongoing calendar year, according to a report by property consultancy Knight Frank India.
As per data collated by Knight Frank Research, GCC-occupied flex seats across eight key markets in India increased to 22,881 in the first nine months of 2024 from 17,380 in 2023. Bengaluru dominates 41% of this market share while Kolkata holds just 1%, the report noted.
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Overall, Knight Frank India in its report titled โGCC โ Driving Indiaโs Real Estate Growth Storyโ cited that Global Capability Centres (GCCs) have emerged as the primary occupiers of flex spaces across the country.
According to Knight Frank India, a year-on-year analysis of GCC flex seat occupancy shows a decline in usage from 2021 to 2023, as companies transitioned back to traditional office spaces with the easing of the Covid-19 pandemic.ย
Resurgence in flex seat occupancyย
The year 2024 saw a shift with flex seat occupancy by GCCs increasing once again. This resurgence is linked to slower economic growth in the US, prompting companies to leverage Indiaโs cost advantages and talent pool, boosting demand for flexible workspaces, the report reasoned. It further added that this change highlights Indiaโs cost-efficiency and skilled workforce as key drivers in workspace decisions for global firms.
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Currently, GCCs occupy almost 202.6 million square feet of Grade A office space across India’s top six cities, with Bengaluru and Hyderabad contributing three-fourths of this leased space, the report said.
According to Knight Frank India, from 2018 to Q3 2024, the IT/ITeS sector has continued to dominate the GCC landscape in India, followed by the BFSI and Consulting sectors.
Mumbai leads with the highest percentage of GCCs under the BFSI sector and Bengaluru leads with the highest percentage of GCCs in the IT/ITeS sector, the report said.
According to the report, of the 1,900 GCCs in India, about 66% originate from the Americas, with 1,250 from the USA and 30 from Canada, showcasing the regionโs major influence. Another 27% of India’s GCCs originate from the EMEA (Europe, Middle East, and Africa) region, reflecting interest from both established and emerging economies. The APAC region, though smaller, contributes 7%, with 44 GCCs from Japan, 25 from Singapore, and 15 from Australia.
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Shishir Baijal, chairman and managing director, Knight Frank India, said that India’s GDP growth, combined with favourable factors such as a stable political climate, a large consumption-driven economy, and a strong regulatory framework in the financial sector have increasingly positioned India as a preferred destination for multinational corporations, with US companies leading the way.
โThe cost-efficient nature of flexible workspaces has further driven a notable increase in occupancy rates among Global Capability Centres (GCCs) in 2024. With a thriving talent pool and competitively priced commercial assets in key markets, GCCs are well-positioned for sustained growth in the coming years,โ Baijal added.
