Coimbatore set to lead next wave of GCC expansion in South India

Coimbatore - July 14, 2025 – CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, and Confederation of Indian Industry (CII), today released a joint report titled ‘Coimbatore: The next frontier for GCCs’. The report highlights Coimbatore’s emergence as a promising destination for Global Capability Centres (GCCs), driven by its robust industrial ecosystem, engineering prowess, and thriving innovation-led infrastructure.

The report was released in presence of Dr Palanivel Thiaga Rajan, Hon’ble Minister for Information Technology and Digital Services, Government of Tamil Nadu, Mr Rajesh Doraiswamy, Chairman, CII Coimbatore Zone Joint & Managing Director Salzer Electronics Ltd, Mr Mahalingam Ramasamy Convenor, GCC Taskforce, CII Coimbatore & Managing Director Netcon Technologies (I) Pvt Ltd, Dr Jairam Varadaraj, Past Chairman, CII Tamil Nadu & Managing Director Elgi Equipment Ltd., Dr R Nandini, Immediate Past Chairperson, CII SR & Managing Director, Chandra Textiles Pvt Ltd and Mr Naved Narayan Co-Convenor, GCC Taskforce Vice President, Mobility Solutions & Head, R&D Center Coimbatore Bosch Global Software Technologies.

Recognized as the next GCC frontier in southern India, the city is fast becoming a strategic hub for Core Industrial and Product Engineering R&D, with an expanding presence in cutting-edge software development and digital technologies. Backed by a strong industrial legacy and deep engineering capabilities, Coimbatore is witnessing rising interest from both domestic and global enterprises looking to establish or expand their GCC footprint. Already hosting over 60 GCC firms and more than 75,000 professionals, this city offers a compelling "Coimbatore Advantage" – presenting competitive real estate and cost dynamics, a high literacy rate and a startup culture with over 250 tech-enabled startups and 23 incubators.

The city’s vibrant ecosystem of specialized SMEs in sectors including automotive, aerospace, embedded systems, and precision engineering offers unmatched advantages for rapid prototyping, testing, and scaling of innovations. With advancements in AI, IoT, and digital twin technologies, and a steady talent pipeline from leading educational institutions, Coimbatore is positioning itself as a future-ready GCC hub that blends manufacturing strength with next-gen tech excellence.

Coimbatore’s Commercial Landscape

Coimbatore’s commercial office market is witnessing steady momentum, with a total stock ranging from 8-10 mn. sq. ft. As of H1 2025, Coimbatore saw 0.15 mn. sq. ft. of supply and recorded 0.35 mn. sq. ft. of absorption reflecting strong demand. The city continues to expand its Grade A office footprint and is attracting businesses with its competitive real estate costs compared to gateway cities.

In addition to this, Coimbatore is fast emerging as a benchmark for sustainable urban growth, underpinned by its strong foundation in green infrastructure and progressive policies. With a clear focus on environmental stewardship, the city is positioning itself as a truly liveable urban center, setting the pace for eco-conscious business expansion. A key driver of this transformation is the surging demand for Grade A office spaces, fuelled by the influx of GCCs. These premium developments inherently incorporate next-gen sustainability features such as smart energy systems, eco-friendly materials, and water recycling technologies, actively accelerating the adoption of green building norms.

With the Tamil Nadu government announcing six major development projects including a new TIDEL Park, an Integrated Jewellery Park, airport expansion, and road and water infrastructure upgrades to the city is rapidly evolving into a strategic hub for global enterprises. These initiatives underscore Coimbatore’s commitment to establishing robust urban foundations and cultivating an environment conducive to innovation, investment, and sustainable long-term growth.

Tamil Nadu: Powering India’s GCCs

India’s Tier-II cities are emerging as the next frontier for GCC expansion, driven by strategic decentralization, robust local ecosystems, and supportive government initiatives. India’s GCC landscape is witnessing a strategic decentralization, with Tier-II/III cities projected to contribute 15–20% of the share by 2025. Backed by robust ecosystems and policy support, this shift is unlocking new growth corridors and driving regional economic transformation. By 2030, GCCs are set to significantly expand their market size, headcount, and capabilities within Tamil Nadu’s technology ecosystem.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “Tamil Nadu continues to cement its leadership in India’s GCC growth story, offering a compelling mix of infrastructure, talent, and policy support. Coimbatore is emerging as a key node in this transformation, blending its deep-rooted industrial strengths with a vibrant tech-driven ecosystem. With strong government backing, competitive costs, and a future-ready environment, the state is well-positioned to attract the next wave of global capability centers seeking innovation, resilience, and sustainable growth.”

Ram Chandnani, Managing Director, Leasing, CBRE India, added, “Coimbatore is uniquely poised at the intersection of engineering excellence and digital innovation. Its stronghold in sectors like automotive, aerospace, and embedded systems—combined with advancements in AI, IoT, and digital twin technologies—is enabling rapid prototyping, scaling, and transformation. The city’s evolving tech infrastructure and specialized SME ecosystem make it an ideal destination for companies looking to drive sector-specific R&D and product engineering from India.”