South Indian Cities Lead Gcc Office Space Leasing In Q1 2025
In the first quarter of 2025, Bengaluru, Chennai, and Hyderabad together made up 64% of all Global Capability Centre (GCC) office space leasing in India. This means nearly two-thirds of all new GCC offices are now being set up in these three cities. As companies continue to grow in India, the southern cities are becoming their top choice.
One big reason behind this trend is the strong infrastructure and talent available in places like South Chennai. Areas such as Pallavaram and the Pallavaram-Thuraipakkam Road, where Prestige Pallavaram Gardens is located, are now attracting both businesses and homebuyers.
From January to March 2025, GCCs leased a total of 8.35 million square feet across India's top 7 cities. Here's how the southern cities performed:
- Bengaluru took the lead with 3.3 million sq. ft., about 40% of the total.
- Chennai leased 1.22 million sq. ft., making up 15%.
- Hyderabad contributed to the remaining share within the 64%, although its exact figure varies in different reports.
This shows that most of the demand is focused in South India, with Chennai quickly catching up as a top destination.
- Skilled Workers: Cities like Chennai and Bengaluru have many engineering and IT colleges. They offer a large pool of skilled workers. Chennai also sees lower employee turnover, which helps companies build stable teams.
- Strong Infrastructure: These cities have good metro lines, airports, roads, and office parks. In Chennai, areas like Pallavaram are growing fast, thanks to new projects like Prestige Pallavaram Gardens, which offer easy access to both workplaces and homes.
- Government Support: States like Tamil Nadu and Karnataka offer tax benefits and easier approval processes to attract businesses.
- Lower Costs: Office spaces in India are much cheaper than in many other countries. This makes it easier for companies to set up large teams without spending too much.
In Q1 2025, these sectors took the most space:
- IT and IT-enabled services – 35%
- Banking and finance (BFSI) – 22%
- Manufacturing and industrial – 13%
- E-commerce – 6%
- Consulting firms – 5%
- Other sectors – 19%
This shows that while IT still leads, other industries are also opening offices in India—especially in cities like Chennai.
- More demand for top-quality offices – Companies want modern, green-certified buildings.
- Steady rents and lower vacancies – In key areas, more offices are being filled, and rents are staying strong.
- Growth of mixed-use projects – Developments like Prestige Pallavaram Gardens combine homes with easy access to workplaces and schools.
- Focus on eco-friendly designs – Companies want offices that support health, energy savings, and employee comfort.
- Flexible office spaces – Many companies are choosing shared or managed office spaces to grow quickly and save money.
- By the end of 2025, there may be around 1,900 GCCs in the country, employing 1.9 million people.
- By 2030, this could grow to 2,300 centers, with up to 2.8 million jobs and a market value of over $100 billion.
- While Bengaluru, Chennai, and Hyderabad will continue to lead, cities like Coimbatore, Kochi, and Ahmedabad are also becoming popular for smaller operations.
The first three months of 2025 show a clear trend—South India is leading the way in GCC office growth. Cities like Chennai are becoming key hubs for both global companies and Indian talent. Areas such as Pallavaram are seeing new growth, with projects like Prestige Prestige Pallavaram Gardens offering a smart mix of homes and business access.
India is not just supporting global companies anymore—it's becoming their home base for growth and innovation.
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