23 March 2024– Foreign corporations’ global competence centres (GCCs) are leasing more office space in India. Real estate management company Colliers claims GCCs leased the most space in 2023 from 2020.
The business believes GCCs—MNCs’ technology and shared services arms—have become a major aspect of commercial real estate since the epidemic. In the decade before, IT corporations ruled. Colliers data reveals GCCs leased 17 million square feet in 2020. That dipped to 15 million in 2021 and increased to 19 million in 2022. It rose 14% to 21.1 million last year. This represented 37% of the 58 million office spaces firms rented. Colliers expects 40% growth in 24 months.
According to Knight Frank’s 2023 India real estate, residential, and office market research, only GCCs expanded in commercial space. Flex spaces, co-working spaces, and third-party IT businesses have all declined. It adds Deloitte, Qualcomm, MUFG Bank, Bank of America, Citibank, and Fidelity were large 2023 occupants.
Conclusion
“While GCCs have traditionally looked for private spaces, they are now warming up to flex spaces,” says Colliers India MD of office services Arpit Mehrotra. “GCCs are now occupying 5% to 10% of the flex spaces,” he adds.
