Offshoring corporations lead workplace leasing in India, Knight Frank report says

Offshoring corporations, led by International Functionality Centres (GCCs), have leased over 46 per cent of the workplace house in India with an general leasing quantity of 27.3 million sq. ft in 2023, and a development of 26 per cent on 12 months based on a report by Knight Frank.

GCCs which can be mushrooming in India have accounted for a big chunk of this leasing, being the most important offshore occupiers. Of the whole, GCCs leased 20.8 msf, the report stated. GCCs share in workplace leasing elevated to 35 per cent in 2023 from 25 per cent, a 12 months in the past.

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GCCs are specialised captive items arrange by world corporations the place they perform specialised features starting from analysis and innovation to providing a gamut of providers together with accounting and authorized to their operations worldwide.

Whereas the data know-how sector has essentially the most variety of GCCs, over the past one 12 months different sectors resembling monetary providers, vehicles, healthcare have additionally arrange GCCs in India.

The know-how sector leased 11 msf house, adopted by industrials and BFSI at 5.6 msf every.

“The rising share of GCCs in complete leases will stay supportive of workplace market demand in 2024,” stated Viral Desai, Senior Government Director, Occupier Technique & Options, Industrial & Logistics, Capital Markets and Retail Company Knight Frank India. He identified that over the previous decade India has reworked itself from an economical centre right into a value-adding captive centre.

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“By 2030, there might be an estimated 2400 GCCs throughout India because it emerges as a worldwide know-how and providers hub. Assuming the same tempo of development, the variety of GCCs in India could scale as much as 2880 by 2034,” he added.

Offshoring has emerged as a vital driver propelling workplace demand within the 4 APAC hubs of India, Philippines, Malaysia and Vietnam.