The Future of Workspaces: What’s Next for Commercial Real Estate in India?

By CBRE India
Global Capability Centres (GCCs) have emerged as pivotal players in India's corporate real estate landscape, driving innovation and operational excellence for multinational corporations. However, their rapid expansion presents unique real estate challenges. Drawing insights from our extensive research, here are the top five challenges faced by GCCs and strategic solutions to address them.

1. Infrastructure and Power Constraints

The exponential growth of GCCs has intensified demand for robust infrastructure, particularly reliable power supply and advanced connectivity. Our Global Data Center Trends 2024 report highlights that large corporations face increasing difficulty securing data center capacity due to low supply, construction delays, and power challenges.

Solution: To mitigate these challenges, GCCs should:


Invest in energy-efficient buildings with redundant power systems to ensure uninterrupted operations.


Collaborate with developers to secure spaces in integrated tech parks equipped with sustainable infrastructure.


Leverage CBRE's Data Center Solutions for comprehensive lifecycle services, ensuring optimal facility performance.


2. Talent Acquisition and Retention

Attracting and retaining top-tier talent remains a pressing concern for GCCs. CBRE's report on India's GCCs notes that the country's abundant skilled workforce is a significant draw for global firms.


Solution: Global Capability Centres can enhance their appeal by:


Establishing operations in cities like Bengaluru and Hyderabad, which are at the forefront of GCC leasing due to their robust talent pools.


Creating collaborative work environments that foster innovation and employee engagement.


Implementing flexible workplace strategies to cater to evolving employee preferences.


3. Regulatory Compliance and Policy Navigation

Navigating the complex regulatory landscape can be daunting for GCCs. However, proactive policies like Karnataka's GCC Policy 2024-29 aim to attract 500 new Global Capability Centres and create 3.5 lakh new jobs by 2029, reflecting the state's commitment to strengthening its foothold in global technology and business services.


Solution: To ensure compliance and capitalize on policy incentives, GCCs should:


Engage with local authorities to stay abreast of regulatory changes and opportunities.


Partner with real estate experts like CBRE to navigate legal frameworks and optimize site selection.


Leverage CBRE's Strategic Advisory Services for insights into market dynamics and policy impacts.


4. Cultural Integration and Operational Alignment

Aligning the operational culture of GCCs with their parent organizations while respecting local nuances is crucial. CBRE emphasizes the importance of creating environments that reflect company values and foster collaboration.


Solution: GCCs can achieve cultural synergy by:


Designing workspaces that promote interaction and embody organizational ethos.


Implementing workplace experience programs to enhance employee engagement and satisfaction.


Utilizing CBRE's Workplace Strategy Services to tailor environments that resonate with both global standards and local cultures.


5. Scalability and Future-Proofing Real Estate Strategies

As Global Capability Centres expand, ensuring that real estate strategies are scalable and adaptable becomes imperative. Our insights indicate that office leasing by GCCs surged to 29.2 million sq. ft. in 2024, marking a 29% year-over-year expansion.


Solution: To accommodate growth, GCCs should:


Adopt flexible workspace solutions that can be scaled based on evolving needs.


Invest in smart building technologies to enhance operational efficiency.


Collaborate with CBRE's Project Management Services to ensure timely and cost-effective expansion initiatives.



Partner with CBRE for Your GCC Real Estate Needs
Global Capability Centres are key to India’s emergence as a global business hub. By tackling real estate challenges with strategic planning and CBRE’s expertise, GCCs can drive sustainable growth and operational excellence.
With over 11,000 professionals across 15 offices and a presence in more than 80 cities, CBRE provides comprehensive support through consulting, site selection, workplace strategy, project execution, and facilities management tailored to the needs of GCCs.
References:

https://www.cbre.co.in/insights/figures/india-office-figures-q3-2024 https://www.cbre.co.in/insights/articles/india-emerges-as-a-key-office-market-hub
https://www.cbre.co.in/insights/articles/indias-commercial-real-estate-market-in-2024-and-beyond