Mumbai, Feb 14 (IANS): Global Capability Centres (GCCs) have leased 22.5 million square feet (mn sq ft) in 2024, accounting for 31 per cent of total leasing volumes, according to the latest office market assessment by real estate consultancy Knight Frank India.

Of this, 50 large deals (over 100,000 sq ft each) totalled 12.1 mn sq ft, while 56 mid-sized deals (50,000 - 100,000 sq ft) contributed 4.4 mn sq ft. Additionally, 223 smaller deals (under 50,000 sq ft) accounted for 5.5 mn sq ft of leased space, the report states.

Among cities, Bengaluru recorded the highest total GCC leasing at 9.33 mn sq ft, 66 per cent of which (6.18 mn sq ft) came from large deals -- marking a 191 per cent surge in absorption. Hyderabad followed, with GCC transactions totalling 5.06 mn sq ft, of which 67 per cent (3.41 mn sq ft) were in the large office space category.

Chennai with 89 and NCR with 53 deals also saw good uptake by GCCs in 2024.

Bengaluru emerged as the dominant market, capturing 42 per cent of total GCC leasing volumes with 100 lease transactions -- the highest among all cities.

Across the top eight cities, GCCs executed 329 leasing deals in 2024. Bengaluru led with 100 transactions, 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 (100,000+ sq ft), 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 NCR region also saw 53 GCC deals, with the majority (38 transactions) in the smaller office category.

Viral Desai, Senior Executive Director, at Retail Agency Knight Frank India, said, “India offers the most compelling ecosystem for the growth of Global Capability Centers (GCCs). A highly skilled talent pool, coupled with progressive government policies, ensures a seamless setup and smooth operations.”

“These advantages are further reinforced by India's exceptional commercial real estate landscape. The country boasts a vast supply of Grade A office spaces with strong ownership structures, comparable to leading global destinations. Moreover, while the quality remains world-class, commercial rents have remained stable in USD terms for over a decade -- making India a highly competitive and cost-effective choice for GCC expansion,” he added.