15% Surge in GCC Lease Transactions in India in 2024, Bengaluru Leads : Knight Frank

India has witnessed a 15% year-on-year (Y-o-Y) increase in global capability centre (GCC) lease transactions in 2024, with the total number of deals reaching 329 compared to 282 in the previous year, according to Knight Frank India. The total office space leased by GCCs in 2024 amounted to 22.5 million square feet (msf), reflecting a 7.9% growth from the 20.79 msf recorded in 2023. GCCs accounted for 31% of the total office leasing volumes, with Bengaluru emerging as the most preferred market.

Breakdown of Lease Transactions

Of the 329 GCC lease transactions recorded in 2024:

• 50 large deals, each exceeding 100,000 square feet, contributed a total of 12.1 msf.
• 56 mid-sized deals, ranging between 50,000 and 100,000 square feet, covered 4.4 msf.
• 223 smaller transactions, each below 50,000 square feet, accounted for 5.5 msf of the leased space.

Bengaluru accounted for 42% of the total GCC leasing volumes, recording 100 lease transactions and securing 9.3 msf of office space. The city's dominance highlights its position as India's primary hub for GCCs, supported by its strong infrastructure, skilled workforce, and favorable business environment.

Regional Preferences in GCC Leasing

Bengaluru remained the most sought-after city for GCCs, followed by Chennai, which recorded 89 deals. In the sub-50,000 square feet category, Chennai led with 73 deals, followed by Bengaluru with 66 transactions. This indicates a significant demand for smaller office spaces in these two cities.

For mid-sized office spaces (50,000–100,000 square feet), Hyderabad recorded the highest number of deals, with 15 transactions, while Bengaluru followed closely with 14. The demand for large office spaces (above 100,000 square feet) was highest in Bengaluru, which secured 20 of the 50 deals recorded in this segment across India.

While Bengaluru, Chennai, and Hyderabad remained the top destinations for GCCs, the National Capital Region (NCR) also reported significant leasing activity. NCR recorded 53 GCC lease transactions, with the majority (38 transactions) in the smaller office space category. This trend suggests a rising interest in establishing GCCs in NCR, particularly in compact office spaces.

Government Initiatives and Future Prospects

The Indian government's policy support is expected to further boost GCC investments. During the Union Budget announcement, the government proposed the creation of a framework to assist states in attracting and facilitating the growth of GCCs. Such initiatives are likely to encourage more multinational corporations to set up or expand their GCC operations in India, particularly in Tier-I commercial hubs.

Shishir Baijal, chairman and managing director of Knight Frank India, stated that India's potential as a GCC destination continues to strengthen due to proactive policies, a highly skilled workforce, and cost-effective real estate options. These factors collectively enhance India’s appeal to global corporations seeking efficient and strategic operational bases.

The increase in GCC leasing transactions highlights India's growing prominence as a hub for global capability centres. While Bengaluru leads the market, cities like Chennai, Hyderabad, and NCR are also witnessing strong leasing activity across various office space categories. With continued government support, a skilled talent pool, and competitive real estate costs, India is expected to attract more GCC investments in the coming years. The ongoing expansion of GCCs in key Indian cities reaffirms the country’s status as a strategic location for global business operations.