GCCs Boost Flex Space Demand Amidst Global Economic Shifts

Global Capability Centres (GCCs) in India have significantly increased their occupancy of flexible office spaces, driven by economic factors in the US and a preference for cost-efficient workspaces. Bengaluru leads in GCC-focused flex space occupancy, indicating a shift towards hybrid working models in a dynamic business environment.

Co-working space operators have reportedly provided nearly 23,000 desks to Global Capability Centres (GCCs) in India during the first nine months of the year, as multinational companies increasingly favor managed flexible office spaces. This data comes from a report by real estate consultancy Knight Frank.

The report titled 'GCC – Driving India's Real Estate Growth Story' highlights that GCCs have become the dominant occupiers of flex spaces throughout the country. It notes that the number of occupied flex seats by GCCs in eight significant markets rose from 17,380 in 2023 to 22,881 in the first nine months of 2024.

The analysis indicates a resurgence in flex space demand in 2024 after a decline between 2021 and 2023 due to the easing of the COVID-19 pandemic, leading companies back to traditional office settings. Knight Frank attributes this shift to a slower economic pace in the US, encouraging firms to capitalize on India's cost benefits and talent pool.

(With inputs from agencies.)