Chennai's GCC Boom: A Future Powerhouse of Premium Office Space

Chennai is projected to gain 12-13 million sq ft of premium office space by 2025-26 due to strong demand from corporates. The number of Global Capability Centres (GCC) is expected to double by 2030, supported by government policies and a rich talent pool, solidifying the city as an innovation hub.

Chennai is on track to introduce 12-13 million square feet of premium office space between 2025 and 2026, amidst burgeoning demand from corporations in various sectors, according to a report by real estate consultancy, CBRE South Asia Pvt Ltd.

Currently, housing about 250 Global Capability Centres (GCC) employing over 150,000 professionals, Chennai's GCC presence is anticipated to grow to 460 by 2030. Government initiatives, like the Tamil Nadu Startup and Innovation Policy and payroll subsidies for new GCCs, are propelling the city's rise as an innovation center.

The CBRE report, 'Tamil Nadu: The Epicentre of Capability and Innovation Leadership,' notes that Chennai ranks third in GCC leasing activity behind Bengaluru and Hyderabad. GCC office absorption has increased from 1.4 million sq ft in 2022 to 2.3 million sq ft in early 2024, with expectations of reaching 450-460 units by 2030, driven by a diverse talent mix and proactive government policies.

(With inputs from agencies.)