Chennai to see around 450 Global Capability Centres by 2030: CBRE

CHENNAI: Chennai is estimated to have around 450 Global Capability Centres (GCCs) by 2030 as against 250 centres now because of supply of premium office space and availability of skilled talent, according to CBRE.

Real estate consultant CBRE on Wednesday released a report titled, ‘Tamil Nadu: The Epicentre of Capability and Innovation Leadership’, highlighting Chennai's rising prominence as a key destination for GCCs and its expanding commercial real estate landscape.

"Over the years, Chennai has solidified its position as a preferred hub for global corporates, which accounts for 11 per cent of India’s current GCC talent. The city currently hosts 250+ GCC units, which is expected to reach around 450-460 units by 2030," CBRE said.

Chennai’s robust infrastructure, proactive state government policies, and quality office development are aligned to meet the needs of global corporates, it added.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “As the world embraces digital transformation, GCCs have emerged as strategic drivers of India's exponential growth." Initially attracted by cost advantages, GCCs in India now leverage the country's deep pool of skilled talent and vibrant startup ecosystem, he added.

"Tamil Nadu presents a compelling proposition for businesses seeking to establish or expand their global operations. The state, with its attractive policy incentives, strong talent pool, robust corporate ecosystem, and abundant quality office space, has solidified its position as a preferred destination for these GCCs," Magazine said.

Chennai is India's fifth-largest office market, with 90+ million square feet of office stock as of September 2024. Total office stock in the city is expected to surpass 100 million square feet by 2026.

Commenting on the report, Angad Bedi, CMD of construction and realty firm BCD Group, said, "India’s position as a technology outsourcing hub has been further elevated with the rise of the GCC ecosystem in the country as enterprises aim to tap into the wide talent pool, robust technology developed and its use case globally." This proliferation of GCCs has been primarily led by Chennai’s proactive policies attracting enterprises from across the world along with the availability of a world-class commercial real estate infrastructure, Bedi added.

According to CBRE, the city houses about 250 GCCs that employ 150,000+ professionals, contributing about 11 per cent of India’s total GCC talent pool.

Strategic policies like the Tamil Nadu Startup and Innovation Policy 2023 and R&D Policy 2022 enhance its attractiveness, the consultant said.

Chennai is ranked third in GCC leasing activity in India after Bengaluru and Hyderabad during the period from January 2022-September 2024.

The city has witnessed GCC office absorption increasing from 1.4 million square feet in 2022 to 2.3 million square feet in the first nine months of 2024.

US firms accounted for 67 per cent of GCC setups between January 2022 and September 2024.

The consultant projected that GCCs would lease around 3-3.2 million sq ft of office space in 2025 in Chennai.