GCCs Fuel Office Space Growth in Chennai, Bengaluru & Hyderabad

In the first quarter of 2025, Global Capability Centres (GCCs) took up a big share of office space in India's major cities. Most of this activity was in the South, led by Bengaluru, Chennai, and Hyderabad. Together, these three cities made up over 60% of all office space leased by GCCs during this time.

In Chennai, areas like Pallavaram and the Pallavaram-Thuraipakkam Road are gaining attention, especially with new developments like prestige pallavaram gardens, which offers easy access to office hubs and the growing metro network.

GCC Office Leasing in Q1 2025 – Quick Facts

1. Total GCC space leased in top 7 cities: 8.35 million sq. ft.
2. South India's share: 5.34 million sq. ft. (64%)
3. Bengaluru: 3.3 million sq. ft. (40% of total)
4. Delhi-NCR: 1.91 million sq. ft.
5. Chennai: 1.22 million sq. ft. (15%)
6. Hyderabad: Approx. 820,000 sq. ft.
7. This marks a 72% jump from Q1 2024 levels.

Which Sectors Are Leasing the Space?

GCCs now support more than just IT. Here's the leasing share by sector:

1. IT/ITeS: 35%
2. Banking and Finance (BFSI): 22%
3. Manufacturing: 13%
4. E-commerce: 6%
5. Consulting: 5%
6. Other sectors: 19%

Where Are These Companies From?

1. 65% of leasing GCCs are US-based
2. 28% from Europe & Middle East
3. 7% from Asia-Pacific

They are picking India for its skilled workers, lower costs, and modern infrastructure.

Why Chennai, Bengaluru, and Hyderabad?
1. Skilled Talent

These cities have large numbers of tech and finance professionals. Chennai, in particular, is strong in banking and auto-related jobs.

2. Modern Infrastructure

From IT parks and SEZs to metro lines and airports, these cities are well-connected. Chennai Metro Phase II is making places like Pallavaram more accessible.

3. Supportive Policies

State governments offer tax breaks, fast approvals, and training support for companies opening new offices.

4. Cost Advantage

Office rents and salaries in these cities are still low compared to the US or Europe. This makes India a smart choice for global firms.

5. Innovation Culture

GCCs are now doing advanced work like AI, cloud tech, and software R&D. They also collaborate with local start-ups and universities.

Future of GCCs in India

By the end of 2025:

1. Over 1,900 GCCs will be active in India
2. Total market value: USD 60–70 billion
3. Jobs created: 1.9 million

By 2030:

1. Up to 2,300 GCCs
2. Market size: USD 100–110 billion
3. Jobs: 2.8 million

Smaller cities like Coimbatore and Kochi may see more activity, but major growth will stay focused in Bengaluru, Chennai, and Hyderabad.

Chennai's Real Estate Benefits

As demand grows, so does interest in nearby housing. prestige pallavaram gardens, located near the city's IT corridor, is seeing strong demand from professionals who want short commutes and modern living. Good transport links, schools, and social spaces make this project a solid choice.

Final Takeaway

In Q1 2025, South India clearly led in attracting global companies. With a skilled workforce, growing infrastructure, and lower costs, Chennai, Bengaluru, and Hyderabad remain top picks for setting up large offices. For investors and homebuyers, this trend brings long-term value and opportunity.