Chennai is expected to see a rise in Global Capability Centres (GCCs), increasing from 250 centres now to nearly 450 by 2030. According to a report by real estate consultant CBRE, this growth is taking place due to the city’s supply of high-quality office spaces and availability of skilled talent.
According to the report, Tamil Nadu: The Epicentre of Capability and Innovation Leadership, Chennai is increasingly becoming the preferred destination for GCCs. Currently, the city accounts for 11% of India’s GCC workforce, employing over 150,000 professionals across 250+ centres.
“Over the years, Chennai has solidified its position as a preferred hub for global corporates,” CBRE stated, adding that the city’s strong infrastructure, supportive government policies, and premium office developments align well with the needs of international businesses.
Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East & Africa, pointed out that while GCCs were initially drawn to India for cost savings, they now benefit from the country’s large talent pool and vibrant startup ecosystem.
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Expanding Commercial Real Estate
Chennai is India’s fifth-largest office market, with over 90 million square feet of office space as of September 2024. This is expected to exceed 100 million square feet by 2026. GCC office leasing in Chennai has also increased from 1.4 million square feet in 2022 to 2.3 million square feet in the first nine months of 2024.
The city ranks third in GCC leasing activity, following Bengaluru and Hyderabad, with US firms accounting for 67% of new GCC setups between January 2022 and September 2024.
CBRE reported that initiatives like the Tamil Nadu Startup and Innovation Policy 2023 and the R&D Policy 2022 have increased Chennai’s appeal, encouraging global businesses to set up operations in the state.
CBRE has predicted that GCCs will lease an additional 3-3.2 million square feet of office space in Chennai by 2025. With proactive policies, a strong corporate ecosystem, and abundant talent, Chennai is set to play a major role in India’s GCC growth story.
