Gurugram, one of the most significant cities amongst top metro cities, has become a focal point for Grade A office spaces, with a unique catalyst driving this surge—Global Capability Centers (GCCs) that global companies set up offshore to access specialized high-skill talent to ensure sustainable business growth. These GCCs, synonymous with innovation and research and development (R&D), are transforming India’s economic orientation.
The technology sector, in particular, has found a robust partner in India, given its established credentials as an outsourcing/offshoring hub. According to a Knight Frank India report, the office space transaction volume of GCCs witnessed an impressive 58 percent surge in 2023, escalating from 13.2 million sq ft in 2022 to 20.8 million sq ft. This surge in GCCs is emblematic of the growing confidence in India’s economic stability, attracting corporate investments and reshaping the landscape of office spaces.
Gurugram’s business environment is highly conducive, with Grade A buildings boasting excellent infrastructure. Its proximity to the national capital, coupled with a well-connected transportation network featuring highways, and metro facilities, positions it as an accessible and convenient business destination from all parts of Delhi-NCR. This has attracted GCCs to set up their offices here.
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Additionally, Grade A buildings offer a prime location, tech-driven parking facilities, and architecturally stunning structures with modern designs, and contemporary aesthetics. Another factor driving the demand for Grade A buildings amongst GCC occupiers is the sustainably designed green buildings. MNCs and other corporates are aggressively considering sustainability as one of the deciding factors while finalizing office space. Amidst the evolving preferences of the workforce and employers’ increased focus on a holistic development approach, they are eyeing comfortable, technologically enhanced, and new-age Grade A buildings.
Gurugram’s allure for GCCs is not just about the physical infrastructure but also about the conducive business environment it offers. The city has evolved into a thriving ecosystem that nurtures innovation, collaboration, and growth. This transformation is mirrored in the increasing number of domestic and international companies choosing Gurugram as their preferred business destination. The correlation between the burgeoning demand for high-quality office spaces and the job opportunities generated by GCCs is a witness to the symbiotic relationship between businesses and infrastructure.
Approximately 25% of the Grade-A office space in the top eight cities of India is currently occupied by Global Capability Centers (GCCs). The GCC sector in India has doubled in size since FY10 owing to the availability of a large pool of tech talent, constant upgradation in India’s digital infrastructure, flourishing start-up ecosystem, and entrepreneurial spirit. The CBRE report predicts that by 2025, India will have 1900 operational Global Capability Centers (GCCs) from the current 1580. Furthermore, the number is expected to increase to 3000 by 2030 with GCCs employing over 3 million people, up from 1.3 million.
The future holds opportunities for developers, businesses, and the local economy to grow significantly. Developers, gyrating around the evolving needs of GCCs, stand to benefit from creating spaces that cater to the requirements of innovation-driven enterprises. The city’s journey from a growing metropolis to a thriving corporate hub underscores its potential for sustained growth.
(By Kaustubh Chandra, Manager, Brahma Group. Views are personal)