2023 witnessed surge in BFSI-dominated, GCC-oriented transactions in Chennai, says study

Chennai sees a 176% surge in Global Capability Centre office transactions, solidifying its position as a preferred GCC destination.

A recent study by Knight Frank India shows that Chennai recorded a surge in Global Capability Centres (GCC)-oriented office transactions during 2023, totalling 6.02 million square feet across 71 deals.

This figure represents a substantial 176% year-on-year (YoY) increase, signifying the city’s growing prominence as a preferred destination for GCC operations.

Of all the GCC deals observed across eight major commercial markets in India during 2023, Chennai accounted for a significant 29%, further solidifying its position in the GCC landscape. This momentum marks a significant leap from the 57 deals recorded in 2022, which totalled 2.18 million square feet.

The study also highlighted industry-wise transactions, and mentioned Banking, Financial Services, and Insurance (BFSI) segment as the frontrunner in GCC-oriented office space transactions.

Despite only six deals throughout the year, the BFSI sector contributed over 30% of GCC transactions in Chennai, leasing a substantial 1.89 million square feet in 2023.

The manufacturing sector emerged as the second-largest occupier of GCC business-oriented office spaces in Chennai’s commercial market, with transactions totalling 1.78 million square feet in 2023. Other service sectors recorded 26 GCC-oriented deals, representing the highest number of transactions during the same period.

Viral Desai, Senior Executive Director, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India, said, “GCCs dominated as an end-user occupier profile, accounting for more than half of the office volume transactions in Chennai during the year 2023.”