New Delhi [India], August 14 (ANI): India's state-level policies for Global Capability Centres (GCCs) are targeting around 1.18 million new jobs and nearly 1,380 GCCs by 2029-31, with the next phase of growth likely to extend beyond established hubs into tier-II and tier-III cities, according to a CBRE report.

The report said the growing policy push is increasingly being matched by demand for office space, with GCCs having leased more than 123 million square feet across India's top nine cities between 2022 and H1 2026.

'The speed at which state governments have moved to formalise dedicated GCC policies is unprecedented in India's commercial real estate landscape,' said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

While Bengaluru, Hyderabad, Chennai, Delhi-NCR and Pune continue to account for a large share of GCC activity, CBRE said geographic diversification will be critical to the sector's long-term expansion. Emerging cities are increasingly being considered for hub-and-spoke models, supported by lower costs, engineering talent and policy incentives.

The report noted that around 94 per cent of India's 2.36 million GCC professionals are concentrated across six tier-I cities, leaving emerging locations with significant room to attract new centres. It said central and state policies, infrastructure development and streamlined regulatory processes could support this shift.

The changing nature of GCC operations could also reshape the type of office space demanded in the coming years. CBRE said large-format transactions of more than 100,000 square feet now underpin GCC leasing activity, while average deal sizes have increased by 18-20 per cent since 2023, pointing towards larger and more integrated operating footprints.

More than half of GCC expansions during 2022-H1 2026 were witnessed in high-growth sectors, while technology, banking, financial services and insurance (BFSI), and engineering and manufacturing accounted for 23 per cent, 22 per cent and 16 per cent, respectively, of GCC leasing.

CBRE further said India's GCC ecosystem is also moving beyond traditional support functions, with centres taking greater ownership of research and development, artificial intelligence, data, cybersecurity and product development.

Over half of India's GCCs have matured into portfolio and transformation hubs, while about 90 per cent operate as multi-functional units.

Going ahead, the report said the focus would need to shift from simply offering incentives to faster execution, better infrastructure, large-format office assets and stronger talent pipelines, particularly in emerging cities. (ANI)