Global capability centres (GCCs) continued their robust momentum in India in the third quarter (Q3) with an overall contribution to the total gross leasing volume (GLV) at 30 per cent, according to a report on Wednesday.

The GLV in the overall office sector reached 24.8 million square feet (MSF) across top eight cities in Q3, marking the second highest quarterly leasing volume in the sector’s history, according to Cushman & Wakefield’s.

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This represents a 66.4 per cent annual YoY growth in GLV and a strong 14.3 per cent quarterly growth, showcasing overall healthy market dynamics.

Total GLV crossed 66.7 million MSF in the nine months, and is set to surpass 80 MSF in 2024.

“With gross leasing volume already exceeding 66 MSF, we’ve reached nearly 90 per cent of the total GLV recorded in 2023. It is highly probable that the full-year total would cross 80 MSF, setting a new record,” said Veera Babu, Managing Director, Tenant Representation, Cushman & Wakefield.

Gross leasing volume, which factors in all leasing activity in the market, including renewal of contracted terms by corporates, is an indication of overall market activity.

“Strong market fundamentals have sustained extraordinary leasing momentum in the Indian office market. This growth GCCs cements India’s status as a key outsourcing hub for innovation and growth,” said Anshul Jain, Chief Executive, India, Southeast Asia and APAC Tenant Representation, Cushman & Wakefield.

The segment remains highly buoyant with leasing set to breach 80 MSF by this year by a wide margin, he added.

Net absorption, which is a barometer of real demand or expansion of occupied space in the market, stood at 12.6 MSF for the quarter across all cities. This reflects a 32 per cent increase quarter-over-quarter and a 54.7 per cent increase year-over-year.

Bengaluru, once again, topped the list with 4.09 MSF of net absorption, followed by Mumbai at 2.6 MSF and Delhi at 1.8 MSF, the report mentioned.

From a sectoral perspective, IT-BPM, flexible workspaces and BFSI were the major contributors towards the quarter’s GLV.