India Turns Up As Major Hub For Global Capability Centers

India has emerged as a leading hub for global innovation, with developers reporting that Global Capability Centers (GCCs) now account for nearly half of the country’s fresh, high-quality office property inventory. Between Q1 2023 and Q2 2024, 124 new companies signed GCC deals, occupying office spaces for greenfield capabilities or R&D centres, according to global property consultancy firm Cushman & Wakefield. Notably, almost two-thirds of these companies were from the United States, reinforcing India’s status as a key office hub for many global corporations.

Sriram Khattar, Managing Director of DLF Rental Business, highlighted that India’s well-educated, cost-efficient talent pool is a major draw for global firms. “India has, over the years, developed a competent and hardworking talent pool which is available in abundance and at lower costs compared to the developed economies,” Khattar said. This advantage, combined with the availability of high-quality Grade A++ office solutions, has made India an attractive destination for multinational firms.

Alok Aggarwal, MD and CEO of Brookfield Properties in India noted that India is transitioning from being a back-office hub to a strategic centre for innovation, driving digital transformation and business excellence. “India has emerged as a global leader in the evolution of GCCs,” Aggarwal said. More than 15 million square feet of Brookfield’s portfolio is now dedicated to GCCs.

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The demand for commercial real estate from GCCs is expected to continue growing. According to Anshul Jain, Chief Executive of Cushman & Wakefield for India, Southeast Asia, and APAC, India is positioned to drive growth and innovation across sectors. “India is helping multinational firms drive growth and deliver on strategic goals by emerging as a global innovation centre and R&D hub,” Jain said.

The GCC market in India is also seeing significant contributions from small and mid-sized companies, with 44 per cent of new GCC companies transacting office space deals having annual revenues below USD 1 billion. Over Q1 2023 – Q2 2024, the total office space leasing volume by GCC companies was 28.8 million square feet, with new GCCs accounting for about 30 per cent of this volume.

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