GCCs drive demand in Pune office market
financialexpress.comGlobal Capability Centres (GCC) of multinational companies are driving demand in Pune’s office space segment. Pune has recorded the highest GCC-focused area transacted volume in the country. Hyderabad was in the second spot in GCC leasing. GCCs accounted for 2.4 million sq ft in Pune and 2.2 million sq ft in Hyderabad.
During Q3 2023, the Pune market witnessed major leasing activity with GCCs capturing 81% of the area transacted. The city accounted for 34% of the GCC area transacted area in the country, a Knight Frank India report said.
Shishir Baijal, chairman and managing director, Knight Frank India, said the leasing landscape in the country had changed with GCC leading the list and ending the Indian IT services dominance in this space. “Global corporates have shown an increased commitment to their India operations by setting up or expanding their centres in India, which constituted 44% of the office transactions in the country,” Baijal said. The share of GCCs has averaged around 21% since Q1 2022.
Pune has seen total office transactions of three million sq. ft. during Q3 of 2023, which was a 319% year-on-year growth and the second highest volume across all top eight markets in the country, Knight Frank India’s Real Estate report said.
Vivek Rathi, director research, at Knight Frank, said GCCs were looking at leveraging the strengths here with lower employee and real estate costs and the talent availability in these markets.
The slowdown in the US and European market has led to a dip in demand from the IT services market. This has led to a decline in the Bengaluru office space market. The top eight markets of India have recorded office transactions of 16.1 million sq ft with a 17% growth during the quarter. New office
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