Share of GCCs in office transactions in Chennai increases by 55% in 2023

Global Capacity Centres (GCC) focused transactions dominated more than half of the office volume deals in Chennai during 2023, totalling 6.02 mn sq ft across 71 deals, a report by Knight Frank India said.
The Banking, Financial Services, and Insurance (BFSI) segment is the frontrunner in GCC-oriented office space transactions. Despite only six deals throughout the year, the BFSI sector contributed over 30% of GCC transactions in Chennai, leasing a substantial 1.89 million square feet in 2023, the report said.
The manufacturing sector emerged as the second-largest occupier of GCC business-oriented office space in Chennai’s commercial market, with transactions totalling 1.78 mn sq ft in 2023. Other Service Sectors recorded 26 GCC-oriented deals, representing the highest number of transactions during the same period, it said.
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Of all the GCC deals observed across eight major commercial markets in India during 2023, Chennai accounted for almost 29%, further solidifying its position in the GCC landscape. This momentum marks a significant leap from the 57 deals recorded in 2022, totalling 2.18 mn sq ft.
GCCs or global in-house centres or captives, are offshore units of large multinationals performing technology operations.
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“GCCs dominated as an end user occupier profile accounting for more than half of the office volume transactions in Chennai during the year 2023. Tamil Nadu R&D Policy 2022 has meaningfully aided in accentuating GCC investments in the state, especially Chennai,” said Viral Desai, Senior Executive Director, Senior Executive Director Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India.
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