As India stands at the cusp of becoming a trillion-dollar economy, the country is becoming a key destination for Global Capability Centres (Global Capability Centres (GCCs)). The confluence of India’s vast resources—ranging from real estate to progressive reforms and a skilled workforce—makes it an attractive option for global companies.
With the commercial real estate market currently valued at USD 40.71 billion and projected to reach USD 106.05 billion by 2029, this sector is experiencing significant growth. Leading Indian cities like Bengaluru and Mumbai have seen substantial traction, driven by the evolving need of workspaces and the return of employees to offices.
A Booming Commercial Real Estate Market
India’s economic and infrastructure growth, coupled with strong reforms, has positioned the country as a viable destination for investment in the commercial sector. The surge in commercial real estate has spurred an increase in demand for flexible workspaces, driven by start-ups, new-age entrepreneurs, and the government’s consistent push to ‘Go Local.’
This robust growth is further fuelled by the expansion of sectors beyond IT, including BFSI, banking, insurance, engineering, manufacturing, e-commerce, and professional services. This has resulted in the surge in flexible workspaces within India’s commercial real estate market in recent years. Their appeal lies in their customization options and ready-to-move-in infrastructure, setting them apart from traditional office spaces.
Trends in the Flexible Spaces segment:
The Appeal of Flex Spaces
As India aspires to become a robust economy, technological advancements and an ambitious workforce make flexible work spaces highly desirable. These spaces offer ease of doing business, thanks to their adaptability and ability to provide companies with customized space and infrastructure. Flex spaces also offer cost savings of up to 15-20% compared to traditional leasing, while facilitating hybrid work models and designs that align with the expectations of modern employees.
The rise of flexible spaces has also created employment and entrepreneurial opportunities in Tier 2 and 3 cities. Freelancers, start-ups, and local businesses now have access to modern infrastructure and facilities, leading to revenue and employment generation in these areas and fostering innovation and productivity in local economies.
Smart and Sustainable Offices: The New Normal
A growing awareness of Environmental, Social, and Governance (ESG) compliance is driving the trend towards smart and sustainable offices. Sustainability is now a crucial factor for both Indian companies and MNCs looking to expand their operations. Real estate developers are investing heavily in creating Grade A office spaces that are LEED certified, using innovative, eco-friendly materials, and conducting regular environmental assessments of these products. Going forward, ESG will likely become a mandatory requirement for all commercial developments, given the urgency of addressing climate change. Hence, developers are making a conscious effort to develop green buildings by collaborating with partners who have the expertise and experience to create such structures.
The GCC Advantage in India
India’s vast skilled talent pool, coupled with technological advancements, makes the country a feasible destination for global companies. MNCs are increasingly focused on consolidating operations to enhance efficiency and reduce operating costs by leveraging India’s technological capabilities, cost effective real estate and progressive government policies.
Flex spaces, with their inherent flexibility, agility, and adaptability, have become extremely attractive to Global Capability Centres (GCCs). Apart from being cost-effective and offering customisable services and amenities flex spaces not only meet business needs but also support expansion and ensure smooth operations. Global Capability Centres (GCCs) benefit greatly from operating in flexible office spaces , as these environments are conducive to attracting and retaining skilled talent. Unlike traditional offices, flex spaces provide modern, vibrant hubs where employees can network and collaborate.
Awfis: Leading the Charge in Flex Spaces
The ability to create and design spaces with ready infrastructure and scalability is available with select co-working brands in India. Awfis, one of the largest co-working brands in India, offers a comprehensive range of services, including coworking spaces, managed offices, mobility, design & build, and facility management services. With a proven track record of designing and managing spaces for GCC clients such as Accenture, Genpact, and Grant Thornton, Awfis stands out as a leader in the flex space industry.
Strategically located across metro and Tier 2 cities, Awfis provides end-to-end solutions to meet workplace and business needs. Their exceptional team of designers and project managers ensure that workspaces are contemporary, equipped with state-of-the-art infrastructure, and favourable to a healthy and productive work environment. From market insights and business planning to advanced tech infrastructure and efficient facility management, Awfis is a one-stop destination for all business needs of GCC
The Future of Global Capability Centres (GCCs) in India
According to experts, GCC will be witnessing robust growth which will also drive the expansion of peripheral sectors such as real estate, employment, infrastructure, and technological innovation, further boosting the Indian economy.
With its skilled talent pool, progressive reforms, and the flexibility of scaling through flex spaces, India is poised to play a significant role in attracting Global Capability Centres (GCCs).
