On the GCC front, nearly 70 million sq ft of GCC demand during the last five years has been concentrated in the top 10 micro markets, accounting for 73% of the total GCC leasing in India. Micro markets such as ORR, Whitefield, SBD 1 and North in Bengaluru, SBD & Off SBD in Hyderabad and OMR Zone 1 & MPR in Chennai, collectively have accounted for two-thirds of the country’s Grade A space uptake by GCCs since 2020.
Interestingly, GCCs in India are spread across micro markets having a wide rental spectrum and continue to favor India on account of skilled talent availability, sectoral diversification and usage functionality of GCC hubs. Going ahead, global companies will continue to prefer having a presence in SBDs & PBDs of major Indian cities which are nearer to the employee catchment areas and have seen significant improvements in accessibility driven by infrastructure developments.
The high-activity micro markets collectively accounted for two-thirds & three-fourths of India’s Grade A office demand & supply respectively since 2020. Of these, 4 high-activity micro markets are in Bengaluru, 3 each in Delhi NCR & Pune, 2 each in Chennai & Hyderabad, and 1 in Mumbai.
These high active micro markets are spread across secondary and peripheral business districts (SBDs & PBDs) and will continue to drive India office market over the next few years amidst city expansions, ongoing infrastructure developments and evolving work models, as per Colliers.
While the existing high-activity micro markets will continue to grow, other emerging micro markets too are expected to witness considerable traction and increasingly compliment the larger micro markets. Each of these high-activity micro markets are likely to witness at least 1 million sq ft of average annual demand & supply and collectively drive more than 80% of the office space demand and new supply in the next few years.
