India’s commercial real estate space receives a boost from GCCs
11 Mar 2025 / 04 min read
India’s national GCC framework will boost commercial real estate, driving office space demand, investment, and job creation in metros and Tier-II/III cities, strengthening India’s global business position.
India's commercial realty space is poised to receive a significant boost from the growing presence of Global Capability Centres (GCCs), with the government's proposed national framework expected to fuel office space demand in major metros and Tier-II and Tier-III cities.
Finance Minister Nirmala Sitharaman announced in the Union Budget on February 1 that the government will introduce a national guidance framework to help states attract and promote GCCs, strengthening India's position as a global business hub.
GCCs, which account for over 30% of total absorption in Tier 1 cities, are growth catalysers of India's office leasing market, according to ratings and research firm CareEdge Ratings. The firm noted that the government's plan to introduce a national framework for GCCs will drive the creation of new leasing hubs, along with the development of commercial parks.
Real estate experts were of the view that the proposed national framework for GCCs is a significant development for India's commercial realty space. It will not only fuel office space demand but also create new opportunities for developers and investors.
The growth of GCCs in India has been driven by the country's large talent pool, cost competitiveness, and favourable business environment. Major metros like Bengaluru, Mumbai, Hyderabad, Pune, and Chennai have emerged as hubs for GCCs, with many global companies setting up their innovation and technology centres in these cities.
The proposed national framework is expected to further accelerate the growth of GCCs in India, with Tier-II and Tier-III cities emerging as new destinations for these centres.
This, in turn, will drive demand for office space, create new job opportunities, and contribute to the growth of India's economy.
As India's commercial realty space continues to evolve, the growth of GCCs is expected to play a significant role in shaping the sector's future. With the government's proposed national framework, India is poised to strengthen its position as a global business hub, attracting more foreign investment and driving economic growth.
