Co-working Spaces in the GCC Served around 23,000 Desks from Jan to Sept

Since MNCs prefer controlled flexible office space, co-working space operators provided about 23,000 workstations to Global Capability Centers (GCCs) in the first nine months of this year, according to Knight Frank.

According to the 'GCC Driving India's Real Estate Growth Story' study by real estate consultant Knight Frank India, the GCCs have become the country's main flex space occupants.

"GCC occupied flex seats across eight key markets increased from 17,380 in 2023 to 22,881 in the first nine months of 2024,"it noted.

According to the consultant, a year-over-year (YoY) review of GCC flex seat occupancy revealed a drop in usage between 2021 and 2023 as businesses returned to conventional office premises as the COVID-19 pandemic subsided.

"But in 2024, there was a change when GCCs' flex seat occupancy increased once more. This comeback is attributed to the US economy's sluggish development, which encouraged businesses to take advantage of India's talent pool and lower costs, increasing demand for flexible workplaces," according to Knight Frank.

In eight Indian locations, Bengaluru accounts for 41% of the occupancy of flex space targeted at the GCC.

The cost-effectiveness of flexible workplaces has also contributed to a significant rise in Global Capability Center (GCC) occupancy rates in 2024. He continued, "GCCs are well-positioned for sustained growth in the coming years with a thriving talent pool and competitively priced commercial assets in key markets."

With Bengaluru and Hyderabad accounting for three-fourths of this leased space, GCC companies currently hold almost 202.6 million square feet of Grade A office space spread throughout India's top six cities.

About 66% of India's 1,900 GCCs are from the Americas, with 1,250 coming from the US and 30 from Canada. EMEA (Europe, the Middle East, and Africa) is the origin of another 27% of India's GCCs. With 44 GCCs from Japan, 25 from Singapore, and 15 from Australia, the APAC area makes up 7% of the total, despite its smaller size.

"The increasing demand for managed office spaces is changing how corporates and enterprises develop their workplace strategies," stated Parul Thakur, Senior Vice President and Business Head of Cowrks, in reference to this trend. Managed office solutions are providing the necessary infrastructure and agility to thrive in the ever-changing business environment of today, as companies continue to place a premium on flexibility, scalability, and collaboration.

The coworking and managed workspaces sector, which provides office spaces that encourage innovation and creativity while assisting businesses in maximizing their infrastructure costs, has also played a significant role in India's emergence as a GCC powerhouse, according to Shesh Rao Paplikar, founder and CEO of BHIVE workspaces.

"The GCC's growth in the Indian office market has witnessed a surge in demand for flex seats, with key markets leading the shift towards agile workspaces," stated Aditya Verma, co-founder and CEO of The Office Pass.

Major markets' occupied flex seats show an increasing tendency toward flexible and hybrid working patterns, highlighting a change in how companies function in a quickly changing economic environment, Verma continued.