Chennai is set to significantly expand its premium office space, adding approximately 12-13 million square feet between 2025 and 2026.
Strong demand from corporates across various sectors and industries is driving this expansion.
Chennai GCCs Expansion
Currently, Chennai is home to about 250 Global Capability Centres (GCCs) that employ over 150,000 professionals, constituting about 11% of the total GCC talent.
The city is ranked third in GCC leasing activity after Bengaluru and Hyderabad from 2022 to September 30, 2024.
Strategic policies by the Tamil Nadu government, including the Tamil Nadu Startup and Innovation Policy, Research and Development Policy, and payroll subsidy programs for newly established GCCs, are solidifying Chennai’s role as a hub for innovation and talent.
These initiatives will drive the growth of GCCs in the city, with the number of GCC units projected to reach 450-460 by 2030.
The city has witnessed GCC office absorption increasing from 1.4 million square feet in 2022 to 2.3 million square feet in the first nine months of 2024.
GCCs will lease approximately 3-3.2 million square feet in 2025 in Chennai.
A diverse talent mix of experienced professionals and fresh graduates underpins this growth.
The state government’s initiatives in workforce training and industry-academia collaboration further strengthen it.
Emerging Hubs
The availability of robust infrastructure, proactive government policies, and quality office development are key factors.
Between 2025-26, the city will add 12-13 million square feet of premium office space.
The city will tailor this space to enhance employee experience and offer state-of-the-art amenities.
Besides Chennai, other cities like Coimbatore, Madurai, and Tiruchirappalli are emerging as key hubs for the manufacturing sector.
These cities provide significant investment opportunities to set up GCCs.
With a robust talent pool in manufacturing, software development, and mechanical engineering, GCCs in Tamil Nadu are poised to deliver niche and foundational expertise, contributing to economic growth.
The expansion of premium office space in Chennai highlights the city’s growing prominence. It is becoming a key destination for global corporates.
The city’s diverse talent pool will further drive economic growth in the region.
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