CHENNAI: Chennai is fast emerging as a hub for Global Capability Centres (GCC) as it recorded a remarkable surge in GCC-oriented office transactions during 2023, totalling 6.02 million sq. ft across 71 deals, according to a report by real estate consultant Knight Frank. The report states that Banking, Financial Services, and Insurance (BFSI) deals alone account for 30% of the transactions.
“This represents a substantial 176% year-on-year (YoY) increase, signifying the city’s growing prominence as a preferred destination for GCC operations. Of all the GCC deals observed across eight major commercial markets in India during 2023, Chennai accounted for a significant 29%, further solidifying its position in the GCC landscape,” the report stated. This momentum marks a significant leap from the 57 deals recorded in 2022, totalling 2.18 million sq. ft.
The report also highlights the BFSI segment as the frontrunner in GCC-oriented office space transactions. Despite only six deals throughout the year, the sector contributed to over 30% of GCC transactions in the city. 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 million sq.ft in 2023.
In the fourth quarter of 2023, Chennai experienced a significant surge in office transaction volume, with a total of 3.3 million sq. ft from 29 deals.