Pune, a bustling city in the state of Maharashtra, has emerged as a major hub for Global Capability Centers (GCCs) in recent years. These GCCs, also known as Global In-house Centers (GICs), are offshore units of multinational corporations that provide a wide range of services such as IT, finance, and research and development. In Pune, GCCs have played a significant role in the city’s real estate market, contributing 55 per cent of the total office leasing of around 10 million square feet (MSF). This figure highlights the dominant role of GCCs in the local market and their growing importance in the city’s economy.
The rise of GCCs in Pune can be attributed to several factors. The city’s strategic location, well-developed infrastructure, and availability of a skilled workforce have made it an attractive destination for multinational corporations to set up their offshore units. Additionally, the cost of operations in Pune is significantly lower compared to other major cities in India, making it a cost-effective option for companies looking to establish a presence in the country.
The increasing demand for GCCs in Pune has also been fueled by the city’s thriving IT sector. Pune is home to some of the top IT companies in India, including Infosys, Wipro, and Tech Mahindra, which have set up their GCCs in the city. This has created a favorable ecosystem for other companies to follow suit and establish their GCCs in Pune.
The impact of GCCs on Pune’s real estate market has been significant. The demand for office space from these companies has led to a surge in the construction of commercial properties in the city. In fact, Pune has witnessed a 25 per cent increase in the supply of office space in the last year alone, with a majority of it being taken up by GCCs. This has not only boosted the city’s economy but has also created job opportunities for the local population.
Apart from the economic benefits, GCCs have also contributed to the development of the city’s infrastructure. With the influx of multinational corporations, the city has witnessed a significant improvement in its transportation and connectivity. The development of new office spaces has also led to the growth of residential and commercial areas, thereby creating a well-rounded and sustainable development in Pune.
The dominance of GCCs in Pune’s real estate market is expected to continue in the coming years. According to a recent report by JLL India, Pune is likely to witness a further increase in the demand for office space from GCCs, with a projected growth of 40 per cent in the next three years. This is a testament to the city’s growing popularity as a preferred destination for GCCs.
The presence of GCCs in Pune has not only boosted the city’s economy but has also enhanced its reputation as a business-friendly destination. The availability of a skilled workforce, cost-effective operations, and well-developed infrastructure have made Pune a preferred choice for companies looking to set up their GCCs. This has not only put Pune on the global map but has also created a positive impact on the city’s overall growth and development.
In conclusion, the dominance of GCCs in Pune’s real estate market, contributing 55 per cent of the total office leasing, is a testament to their growing importance in the city’s economy. With their significant contribution to the development of the city’s infrastructure and economy, GCCs have established themselves as a major driving force behind Pune’s success. As the demand for GCCs in Pune continues to grow, it is safe to say that the city’s future is bright and promising, making it an ideal destination for businesses to thrive and grow.
