GCC-led IT sectors capture 49% of Hyderabad’s office space transactions: Knight Frank India

Information Technology led the chart followed by the Banking, Financial Services and Insurance.

Updated On – 26 July 2024, 03:29 PM

Hyderabad: In the overall office absorption in Hyderabad’s commercial market, the Information Technology / IT enabled Services (IT / ITeS) led the chart followed by the Banking, Financial Services and Insurance (BFSI).

Knight Frank in association with 3AI, in its latest report, ‘Global Capability Centres and India Office Market Landscape’ revealed that the total office space absorption by GCCs in the Hyderabad’s commercial market stood at 3.46 mn s ft.

In the industry wise GCC focussed transactions, the report document that the IT/ITeS contributed 49 per cent of the overall office absorption in the city’s commercial market.

Between 2018-2023, Hyderabad witnessed a total of 713 deals of which, 509 were in office space below 50,000 sft, 12 deals were between 50,000 sft and 1,00,000 sft and about 92 deals were recorded in office space above 1,00,000 sft.

The other key contributors were BFSI at 26 per cent, consulting at 15 per cent, healthcare at 10 per cent while remainder sectors contributed 7 per cent.

Across the country, the Knight Frank report cited that office absorption by GCC is estimated to reach 26 mn sft by 2027up from19.69 mn sft in 2023. Transaction activities have increased by 16 per cent from 16.99 mn sft in 2018 with GCCs completing 6,667 office leasing deals across eight major cities between 2018 and 2023.

The growth of GCCs highlights India’s potential to enhance processes and drive business innovation, it said. Mumbai led with highest percentage of GCCs under the BFSI sector and Bengaluru leads with highest percentage of GCCs in the IT/ITeS sector.

Shishir Baijal, Chairman &Managing Director, Knight Frank India, said, “India’s GDP growth continues to be the fastest among major economies in the world, attracting attention for its strong infrastructure, and a consistent influx of top-tier talent and corporate entities.”

Sameer Dhanrajani, CEO, 3Ai said, “The future of GCCs in India is promising, with projections showing over 1,900 centres by 2025, employing around 2 million people.”

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