In Chennai's commercial real estate market, the growing trend of deals centered around Global Capacity Centers (GCCs) has taken center stage. According to a Knight Frank India study, the city saw a spike in GCC-focused office purchases in 2023, totaling 6.02 million sqft across 71 agreements. This number indicates a 176% YoY rise, indicating Chennai's increasing popularity as a favored location for GCC activities.
Chennai accounted for a substantial 29% of all GCC agreements seen across eight key commercial markets in India in 2023, according to the findings of a survey done by Knight Frank India. This further solidifies Chennai's place in the GCC landscape. The 57 transactions totaling 2.18 million square feet that were registered in 2022 pale in comparison to this velocity.
Regarding the industry, the survey said that the leading sector in GCC-focused office space deals is the BFSI (Banking, Financial Services, and Insurance) segment. "The BFSI sector contributed over 30% of GCC transactions in Chennai, leasing a substantial 1.89 million sqft in 2023, despite only 6 deals throughout the year," the statement stated.
With purchases of 1.78 million sqft in 2023, the manufacturing sector emerged as the second-largest tenant of GCC business-oriented office space in Chennai's commercial market, trailing closely behind. The largest number of transactions over the same time was reported by other service sectors, with 26 deals focused on the Gulf Cooperation Council.
