Hyderabad: Hyderabad has maintained its position among the top three cities driving space absorption by Global Capability Centres (GCC) from January to June 2023.
During this period, GCCs leased 1.4 million square feet in the city, with key micro-markets being IT Corridor-II and Extended IT Corridor.
The report from CBRE South Asia Pvt Ltd, titled ‘India’s Global Capability Centres-charting a new technology era,’ predicts that GCCs are expected to lease around 60-62 million sq. ft. of office space in Hyderabad between 2023-25.
The report indicates that sectors like technology, BFSI, and engineering and manufacturing will lead leasing activities, while life sciences, automobiles, and aviation sectors are also set to expand their GCC operations in India.
While cost arbitrage in tier-II cities has historically been advantageous for emerging hubs, the recent focus on infrastructure development in these cities has further enhanced the appeal of non-metro locations.
Bengaluru, Chennai, and Hyderabad collectively accounted for over 77% of total GCC leasing from January to June. The report estimates that by 2025, there will be 1,900 operational GCCs in the country, up from the existing 1,580 firms. During this period, GCC leasing is anticipated to contribute 35 to 40% to the overall office leasing market.
