India records 15% increase in GCC lease deals in 2024: Knight Frank

India recorded a 15 per cent year-on-year (Y-o-Y) increase in global capability centre (GCC) lease deals in 2024, with 329 lease transactions against 282 in 2023, according to Knight Frank India.

 

The leasing of office spaces to GCCs in 2024 stood at 22.5 million square feet (msf), up 7.9 per cent Y-o-Y, compared to 20.79 msf in 2023. GCCs accounted for 31 per cent of total leasing volumes, with Bengaluru emerging as the most preferred market.

 

Of the 329 deals, 50 large deals of over 100,000 square feet (sq ft) each totalled 12.1 msf, while 56 mid-sized deals (50,000–100,000 sq ft) contributed 4.4 msf. Additionally, 223 smaller deals (under 50,000 sq ft) accounted for 5.5 msf of leased space.

 

Bengaluru captured 42 per cent of total GCC leasing volumes, with 100 lease transactions totalling 9.3 msf of office space in 2024—the highest among all cities.

 

Bengaluru was followed by Chennai with 89 deals. Both cities saw the highest number of leases in the sub-50,000 sq ft category. Chennai recorded 73 deals in this segment—the highest among all cities—followed by Bengaluru with 66 deals. In the mid-sized office segment, Hyderabad led with 15 deals, while Bengaluru followed closely with 14 deals.

 

In the large office category, Bengaluru led with 20 deals, reinforcing its position as a preferred destination for GCCs. While the three southern cities—Bengaluru, Chennai, and Hyderabad—remained the most attractive for GCCs, the National Capital Region (NCR) also saw 53 GCC deals, with the majority (38 transactions) in the smaller office category.

 

Shishir Baijal, chairman and managing director, Knight Frank India, said, “The Government of India’s announcement during the Union Budget about building a framework to help states promote GCCs and enhance their growth should spur corporate interest in setting up GCCs in both mainstream and Tier-I commercial markets in the future. India’s potential as a GCC destination will continue to gain credence through such proactive policies and initiatives. Combined with India's skilled talent pool and cost-effective real estate options, India’s stature as a GCC market continues to grow.”