Chennai is gearing up to expand its commercial skyline, with 12-13 million square feet of premium office space expected to be added between 2025 and 2026. A report by real estate consulting firm CBRE South Asia Pvt Ltd attributes this boom to rising demand from global corporations spanning diverse industries.

Currently, Chennai hosts around 250 Global Capability Centres (GCCs), employing over 150,000 professionals. It holds a significant 11% of India’s total GCC talent. By 2030, Chennai’s GCC count is projected to nearly double, reaching 460 units, according to the report titled ‘Tamil Nadu: The Epicentre of Capability and Innovation Leadership.’

Policies That Propel Growth

Chennai’s rise as a corporate hub isn’t accidental. Initiatives by the government, like the Tamil Nadu Startup and Innovation Policy, Research and Development Policy, and payroll subsidy programmes for new GCCs, are paving the way for talent development and innovation.

“The city’s strategic location and excellent connectivity have made it a preferred business destination, furthering economic development,” said Ram Chandnani, Managing Director, Advisory and Transaction Services at CBRE India.

GCC Growth in Numbers

Chennai ranks third in GCC leasing activity from 2022 to September 2024, trailing Bengaluru and Hyderabad. The numbers tell the story:

• GCC office space absorption jumped from 1.4 million sq ft in 2022 to 2.3 million sq ft by September 2024.

• By 2025, GCCs are expected to lease 3-3.2 million sq ft, solidifying the city’s role as a top-tier destination for corporate expansion.

• Talent growth is just as striking, with the GCC workforce expected to hit 320,000-370,000 professionals by 2030, thanks to a mix of experienced hires and fresh graduates.

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Infrastructure and Innovation

The report states that upcoming office spaces will offer state-of-the-art amenities and are tailored to enhance employee experiences, adding a competitive edge to Chennai’s commercial appeal.

Other Tamil Nadu cities like Coimbatore, Madurai, and Tiruchirappalli are also emerging as strong contenders. With expertise in manufacturing, mechanical engineering, and software development, these cities provide fertile ground for GCCs and manufacturing hubs.

As Chandnani said, “To foster investment and job creation, the Tamil Nadu government has proactively initiated policies across sectors.”

Chennai’s GCCs draw strength from sectors like manufacturing, engineering, BFSI (banking and financial services), and technology. Notably, 67% of GCCs established between 2022 and September 2024 belong to US-based companies, showcasing Tamil Nadu’s appeal on the global stage.

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