By laksh5382 
Global Capacity Centers (GCC) to lease 3-3.2 million sq ft in Chennai by 2025. Over the past few years, Chennai has strengthened its position as a preferred hub for global corporates, accounting for 11 per cent of India’s current GCC talent pool, according to a report by CBRE South Asia Pvt Ltd. Ltd., India’s leading real estate consulting firm.
Chennai ranked third in GCC leasing activity in India after Bengaluru and Hyderabad during the first nine months of 2022 to 2024. GCC office absorption in the city to increase from 1.4 million sq ft to 2.3 million sq ft in 2022. The first nine months of 2024.
This growth is driven by strong demand from corporates belonging to sectors such as engineering and manufacturing (33 percent), BFSI (27 percent), and tech (13 percent). US companies accounted for 67 percent of GCC setup between 2022 and 9M 2024. During the same period, major micro markets in Chennai such as OMR Zone 1, MPH Road and PT Road cumulatively contributed 92 per cent to the overall city growth. The report said that GCC leasing has strengthened Chennai’s position as a global hub for corporate development.
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Reading:Leasing by Global Capability Centers grew 17% year-on-year, recording 22.5 million sq ft in FY24
Chennai currently has around 250 GCCs employing over 150,000 professionals, contributing around 11 per cent to India’s total GCC talent pool with remarkable ER&D capabilities. Strategic policies such as the Tamil Nadu Startup and Innovation Policy 2023 and R&D Policy 2022 enhance its attractiveness, while the Payroll Subsidy Program for the newly established GCC encourages high-paying jobs, attracts substantial global investment and creates a pool of innovation and talent. Strengthens the city’s role as a centre. , the report said.
The report ‘Tamil Nadu: The Epicenter of Capability and Innovation Leadership’, released by Industry Secretary Arun Roy on Wednesday at the GCC Next Summit 24, said Chennai currently hosts 250+ GCC units, of which around 450-460 units Expected to reach. By 2030.
The report highlights the growing prominence of Chennai as a leading GCC destination and the expanding commercial real estate landscape.
In line with this growth, the GCC talent pool in Chennai is projected to grow by 1.4 times, reaching 320-370 thousand by 2030. This growth is based on a diverse talent mix of experienced professionals and fresh graduates, further strengthened by state government initiatives. Workforce training and industry-academic collaboration.
Chennai infrastructure
Chennai’s strong infrastructure, proactive state government policies and quality office developments are set to meet the needs of global corporates. Between 2025 and 2026, the city is set to add 12-13 million square feet of premium office space to enhance employee experience and provide state-of-the-art amenities.
Chennai is India’s fifth largest office market, with an expected office stock of 90 million sq ft by 2024 (YTD). According to the report, the city’s total office stock is expected to exceed 100 million square feet by 2026. Campus-style developments and sustainable design approaches make the city a magnet for businesses that prioritize employee well-being and environmental awareness.
Coimbatore GCC Development
Tamil Nadu’s vision of becoming a $1 trillion economy by 2030 is based on its strong industrial base and expanding services sector including in the GCC. The report said cities such as Coimbatore, Madurai and Tiruchirappalli are emerging as major hubs for manufacturing investment, providing significant opportunities for the GCC to boost innovation and product development.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said, “As the world embraces digital transformation, Global Competence Centers (GCCs) are a strategic driver of India’s rapid growth. Have emerged as. Initially attracted by cost advantages, GCCs in India are now taking advantage of the country’s deep pool of skilled talent and vibrant startup ecosystem.
Ram Chandanani, Managing Director, Advisory and Transaction Services, CBRE India, said, “Chennai is a vibrant metropolis with a rich cultural heritage and a thriving economy. The city’s strategic location and excellent connectivity has made it a preferred business destination, driving economic growth.
The convergence of talent availability and strong infrastructure drives businesses to set up GCCs in emerging and developing cities of Tamil Nadu. Government investment in education and training initiatives further enhances the state’s ability to meet the emerging demands of the modern economy. Coimbatore, Madurai and Tiruchirappalli in Tamil Nadu are the emerging cities in the GCC region, he said.