Chennai’s GCC leasing to reach 3.2 mn sq ft. in 2025: CBRE report

Global Capability Centres (GCCs) would lease 3-3.2 mn sq ft. in 2025 in Chennai. Over the years, Chennai has solidified its position as a preferred hub for global corporates, accounting for 11 per cent of India’s current GCC talent, according to a report by CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm.

Chennai ranked third in GCC leasing activity in India after Bengaluru and Hyderabad during the period from 2022 to the first nine months of 2024. The city witnessed GCC office absorption increase from 1.4 million sq. ft. in 2022 to 2.3 million sq. ft. in the first nine months of 2024.

This growth is fuelled by strong demand from corporates belonging to sectors such as engineering and manufacturing (33 per cent), BFSI (27 per cent), and tech (13 per cent). US firms accounted for 67 per cent of GCC setups between 2022 and 9M 2024. During the same period, key micro-markets in Chennai, like OMR Zone 1, MPH Road, and PT Road, cumulatively contributed to 92 per cent of the overall city GCC leasing, cementing Chennai’s position as a global hub for corporate growth, the report said.

• Read:Leasing by Global Capability Centres surged 17% y-o-y, recording 22.5 million sq ft in FY24

Chennai currently houses about 250 GCCs that employ 150,000+ professionals, contributing about 11 per cent of India’s total GCC talent pool with notable ER&D capabilities. Strategic policies like the Tamil Nadu Startup and Innovation Policy 2023 and R&D Policy 2022 enhance its attractiveness, while the payroll subsidy program for newly established GCCs incentivizes high-paying jobs, drawing substantial global investments and solidifying the city’s role as a hub for innovation and talent, the report said.

The report ‘Tamil Nadu: The Epicentre of Capability and Innovation Leadership’, released on Wednesday by Industries Secretary Arun Roy at the GCC Next Summit 24, says that Chennai currently hosts 250+ GCC units, which are expected to reach around 450-460 units by 2030.

The report highlights Chennai’s rising prominence as a key GCC destination and expanding commercial real estate landscape.

Aligned to this growth, the GCC talent pool in Chennai is projected to grow by 1.4X, reaching 320-370k by 2030. This growth is underpinned by a diverse talent mix of experienced professionals and fresh graduates, further strengthened by the state government’s initiatives in workforce training and industry-academia collaboration.

Chennai infrastructure 

Chennai’s robust infrastructure, proactive state government policies, and quality office development are aligned to meet the needs of global corporates. Between 2025 and 2026, the city is set to add 12–13 million sq. ft. of premium office space tailored to enhance employee experience and offer state-of-the-art amenities.

Chennai is India’s fifth-largest office market, with 90+ million sq. ft. of office stock as of 2024 (YTD). According to the report, the city’s total office stock is expected to surpass 100 million sq. ft. by 2026. Campus-style developments and sustainable design approaches make the city a magnet for businesses that prioritise employee well-being and environmental consciousness.

Coimbatore GCC development

Tamil Nadu’s vision of becoming a $1 trillion economy by 2030 is underpinned by its strong industrial base and expanding services sector, including GCCs. Cities like Coimbatore, Madurai, and Tiruchirappalli are emerging as key hubs for manufacturing investments, providing significant opportunities for GCCs to drive innovation and product development, the report said.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “As the world embraces digital transformation, Global Capability Centers (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.”

Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India, said, “Chennai is a vibrant metropolis with a rich cultural heritage and a thriving economy. The city’s strategic location and excellent connectivity have made it a preferred business destination, furthering economic development.

The convergence of talent availability and robust infrastructure propels businesses to establish GCCs in Tamil Nadu’s emerging and developing cities. Government investments in education and training initiatives further bolster the state’s capacity to meet the evolving demands of the modern economy. Coimbatore, Madurai, and Tiruchirappalli are emerging cities in Tamil Nadu in the GCC space, he said.