Cushman & Wakefield India launched its report, Global Capability Centers – Powering the Growth of Indian Commercial Real Estate, at the AMCHAM Global Capability Centers Summit 3.0.Anshul Jain, Head of APAC Tenant Representation and Managing Director, India & South East Asia, formally launched the report amidst the presence of prominent industry leaders and key policy makers.
The report highlights how the growth of Global Capability Centers has big implications for the commercial real estate sector. As per the report, more than one fifth of Grade A office stock across top-8 real estate markets in India is currently occupied by Global Capability Centers, and future office demand is expected to be fueled by more GCCs trying to establish
presence across its major cities. The report also shared how going beyond, some tier-II cities are also expected to witness traction from Global Capability Centers in near future as these cities exhibit potential on important metrics such as talent availability, international connectivity, ease of doing business etc.
Speaking about the report, Anshul Jain, Head of APAC Tenant Representation and Managing Director, India & South East Asia commented -“Global Capability Centers have become an important contributor towards high-value job creation in India, and the commercial real estate fraternity in India sees this as an opportunity to go beyond the traditional cost-conscious approach towards office space development. Driven by their global ambition for digital transformation, innovation and R&D, their aim is to make workplace more engaging for their highly tech-oriented workforce and meet sustainability targets. Given the abundance of tech talent pool in India, and its benign foreign / trade relations with most countries, India is looked upon as a leading destination for GCCs to expand their base.”
As per the report Global Capability Centers have been consistently accounting for nearly one-fifth of all space transacted (gross leasing volume) in India. The share of GCCs in overall office leasing volumes reached a peak in 2019 and then normalized a bit during the pandemic. Leasing volumes of GCCs could pick up in the medium-term as more companies draw plans to set-up their India capability centers. ER&D segment has been witnessing healthy activity with large occupiers either establishing or expanding their India centers.
The report further added that with close to 1900 Global Capability Centers been established, India is counted amongst fastest growing Global Capability Centers markets in the world. Prominent tech-driven cities such as Bengaluru, Hyderabad, NCR, and Pune have been attracting bulk of the Global Capability Centers entering India, although other tier-I cities have been featuring high as well. Initiatives taken by the government on ESG front has been gradually reflecting on real estate too, with more than a fifth of commercial office inventory now having LEED certification. This bodes well for multinational Global Capability Centers who are taking measures towards meeting their sustainability goals. Amongst top-3 economies with largest pool of tech talent, India currently offers the smallest gap in demand-supply ratio of skilled talent, which is also an attractive proposition.
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