India records 329 GCC deals in 2024, Bengaluru, Hyderabad and Chennai preferred for GCC deals: Knight Frank

• Bengaluru records 100 lease deals totaling 9.3 mn sq ft of office space by GCCs
• Hyderabad saw the second highest leasing volumes of 5+ mn sq ft
• Chennai with 89 and NCR with 53 deals also saw good uptake by GCCs in 2024

Bengaluru, February 14^th, 2025 – Knight Frank India, in its latest office market assessment, notes that Global Capability Centres (GCCs) leased 22.5 million square feet (mn sq ft) in 2024, accounting for 31% of total leasing volumes. 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.

Bengaluru emerged as the dominant market, capturing 42% 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.

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

OFFICE LEASING TRENDS BY GCCs IN 2024

Source: Knight Frank Research

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “GCCs have made a notable journey in Indian commercial real estate landscape. The Government of India’s announcement during union budget about building a framework to help states promote GCCs and enhance their growth should spur corporate interest to set up GCCs in both mainstream and tier 1 commercial markets in future. India’s potential as a GCC destination will continue to gain credence by such proactive policies and initiatives. Combined with India’s skilled talent pool and cost-effective real estate options, India stature as a GCC market continues to grow.”

Chennai, which witnessed a significant year-on-year (YoY) increase in GCC transactions in 2023 due to one massive transaction by Bank of America which pushed the city to the top of the GCC leaderboard with 6 mn sq ft transacted during the year. This large base is primarily responsible for the 48% YoY fall in GCC take-up during 2024. GCC transactions in Chennai were distributed across different office size categories, with large office spaces accounting for 1.07 mn sq ft and small office spaces contributing 1.48 mn sq ft. Meanwhile, mid-sized office space transactions totalled approximately 600,000 sq ft.

Viral Desai, Senior Executive Director, Occupier Strategy and Solutions, Industrial & Logistics, Capital Markets, 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.”