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India’s Global Capability Centres (GCCs) are increasingly favouring secondary and peripheral business districts (SBDs and PBDs) in major cities, according to a recent report by Realty+. These areas, which are often located near employee catchment areas and have seen significant improvements in accessibility due to infrastructure developments, are becoming attractive locations for GCCs.

The report highlights that over the past five years, nearly 70 million sq ft of GCC demand has been concentrated in the top 10 micro markets in India, accounting for 73% of the total GCC leasing in the country. 

Micro markets such as Bengaluru’s Outer Ring Road (ORR) and Whitefield, Hyderabad’s Secondary Business District (SBD) and Off SBD, and Chennai’s Old Mahabalipuram Road (OMR) Zone 1 and Muttukadu-Pradeshivakkam Road (MPR) have collectively accounted for two-thirds of the country’s Grade A space uptake by GCCs since 2020.

According to the report, GCCs in India are spread across micro markets with a wide rental spectrum and continue to favour the country due to the availability of skilled talent, sectoral diversification, and usage functionality of GCC hubs.

 “Global companies will continue to prefer having a presence in SBDs & PBDs of major Indian cities which are nearer to the employee catchment areas and have seen significant improvements in accessibility driven by infrastructure developments,” the report states.

The high-activity micro markets, which are spread across SBDs and PBDs, have accounted for two-thirds of India’s Grade A office demand and supply since 2020. These micro markets are expected to continue driving the office market in India over the next few years, with each of them likely to witness at least 1 million sq ft of average annual demand and supply.

The report also points out the importance of emerging micro markets, which are expected to witness considerable traction and increasingly complement the larger micro markets. As the GCC sector continues to play a significant role in driving India’s office market, SBDs and PBDs are emerging as key locations for these centres.

The growth of GCCs in India is driven by the country’s large pool of skilled talent, favourable business environment, and government initiatives to support the sector. With the GCC sector expected to continue growing, India’s office market is likely to see significant demand for high-quality office space in the coming years.

The report suggests that GCCs will remain a key driver of India’s office market, with SBDs and PBDs emerging as preferred locations for these centers. As the sector continues to evolve, it will be interesting to see how the office market in India responds to the growing demand for high-quality office space.