Article

The Role of Real Estate in Supporting GCC Growth

December 24, 2024

By Ram Chandnani

The Role of Real Estate in Supporting GCC Growth

Global Capability Centres (GCCs) have emerged as a vital component of India's economic growth, with an increasing number of multinationals setting up their GCCs in the country. These are specialized units that provide a range of services, including IT, finance, and human resources, to support the global operations of their parent companies. India's favourable business environment, skilled workforce and cost competitiveness have made it an attractive destination for GCCs.

The growth of GCCs has been driven by the increasing demand for specialized services, such as data analytics, artificial intelligence and digital transformation. In fact, GCCs have played a pivotal role in driving the growth of India's office market, accounting for a significant 44% of the total space take-up in Q3 2024. Between 2022 and H1 2024, GCCs leased an impressive 53 million sq. ft. of space, underscoring their growing presence in the country. Moreover, many FORTUNE 500 GCCs have expanded into emerging markets, further solidifying India's position as a preferred destination for these centres.

The Indian real estate market has responded to this demand by developing specialized office spaces that cater to the needs of GCCs. As GCCs continue to expand their operations in India, they require high-quality office spaces that can support their growth and provide a conducive work environment.

Harnessing the Potential of Indian Real Estate: Opportunities and Benefits for GCCs

The Indian real estate market offers a wide range of opportunities for GCCs, from specialized office spaces and research and development (R&D) facilities to industrial parks and logistics hubs. With the Indian government's push for infrastructure development and urbanization, the demand for quality real estate is expected to increase significantly in the coming years. GCCs can benefit from India's favourable business environment, which includes a large and growing consumer market, a skilled and cost-competitive workforce and a relatively stable and predictable regulatory framework. Additionally, the Indian government has introduced various initiatives to attract foreign investment, including the relaxation of foreign direct investment (FDI) norms and the introduction of the Real Estate (Regulation and Development) Act, 2016.

The Evolution of New Office Trends and Technologies: A Boost for GCCs

The Indian office market is undergoing a significant transformation, driven by the evolution of new office trends and technologies. The growing demand for flexible and collaborative workspaces, fuelled by the rise of startups and entrepreneurs, is leading to the development of innovative and futuristic office spaces. GCCs can benefit from this trend by investing in modern and sustainable office developments that cater to the needs of the new-age workforce. The use of cutting-edge technologies such as artificial intelligence, the Internet of Things (IoT) and building information modelling (BIM) is also becoming increasingly prevalent in Indian office developments, offering GCCs the opportunity to invest in futuristic and technologically advanced projects.

 In conclusion, the growth of GCCs in India has created a win-win situation for all stakeholders. As India continues to solidify its position as a preferred destination for GCCs, it is essential to recognize the critical role that the real estate sector plays in supporting this growth. By fostering a collaborative and innovative ecosystem, India can unlock the full potential of GCCs and drive sustainable economic growth. This, in turn, can lead to increased investments, job creation and knowledge transfer, ultimately contributing to India's emergence as a major player in the global economy.