Tamil Nadu has been home to Global Capability Centres (GCCs), but the pace of expansion has accelerated in recent years, with several prominent global companies choosing Chennai as their GCC hub. The previous Dravida Munnetra Kazhagam (DMK) government placed a strong emphasis on building the State’s GCC ecosystem, and now the Tamilaga Vettri Kazhagam (TVK) government is continuing to pursue investments in the sector through a series of MoUs. It has also made new announcements for the sector.
As the GCC footprint expands, the ripple effect is expected to be felt across Chennai’s commercial real estate market, driving demand for Grade A office space and fuelling leasing activity. This mirrors the impact of the IT boom on office and residential development in the late 90s and early 2000s.
To attract the next generation of GCCs, Tamil Nadu’s Industries Minister S. Keerthana recently said that the ‘Tamil Nadu GCC Corridor and Growth Plan’ will be introduced along the Pallavaram-Thoraipakkam Radial Road, Mount-Poonamallee High Road and Rajiv Gandhi Salai. She said these zones would have higher FSI, along with improved common and shared infrastructure facilities, to attract more GCCs to Chennai.
“The Tamil Nadu GCC Corridor and Growth Plan is a strategic initiative to unlock expansion capacity for multinational Global Capability Centres already operating in Chennai”Deepak JacobManaging director and CEO of Guidance, a nodal agency located in Chennai
“Rather than piecemeal project approvals, the government is treating three established commercial corridors as integrated zones with coordinated planning and infrastructure development,” adds Jacob.
The Pallavaram-Thoraipakkam Radial Road was chosen because it already hosts established IT infrastructure and serves as a critical north-south connector for the southern GCC cluster, with direct connectivity to Chennai International Airport via the Pallavaram Flyover, says Jacob. “Mount-Poonamallee High Road (SH-55) is an emerging commercial corridor with proven GCC presence and benefits from upcoming Poonamallee Metro Line development, making it a gateway for multinational entry. Rajiv Gandhi Salai (OMR) is the established premier IT corridor with the highest GCC concentration and proven demand from banking and financial services (BFSI), automotive and professional services sectors.”
FSI enhancement
The core game plan involves enhancing Floor Space Index (FSI) in eligible zones to allow existing GCC campuses to expand vertically without additional land acquisition, while upgrading common infrastructure.
Jerry Kingsley
“The increased FSI will enable developers to build greater floor area and leasable space and it can also support in redesigning projects to higher densities, generating greater development returns and improved margins without needing to purchase additional land, benefitting developers, property owners and investors,” says Jerry Kingsley, head of research, India, and city lead for capital markets, JLL Chennai, a commercial real estate solutions.
Kingsley adds that by targeting GCCs, which require Grade A infrastructure, the corridor ensures sustained demand for premium office space.
The resulting influx of skilled professionals will drive residential development across mid-to-premium segments, triggering new housing projects.
Growth broadens
According to Kanchana Krishnan, city head and executive director, Anarock, a real estate consultancy, GCCs accounted for around 55% of Chennai’s office leasing in the first half of 2026, up from 49% in 2025. “
“GCCs bring high-quality employment, which creates demand for housing, retail, hospitality, schools, healthcare and other social infrastructure. The impact can extend beyond the office market, creating a broader employment-led real estate ecosystem”Kanchana KrishnanCity head and executive director, Anarock
Currently, Tamil Nadu is home to over 465 Global Capability Centres, representing approximately 10%-15% of India’s entire GCC ecosystem. The State has 4.5 lakh GCC-ready professionals and added roughly 65,000 GCC jobs in the financial year 2025. Chennai accounts for 405 of these GCCs. Tamil Nadu’s emerging cities such as Coimbatore, Madurai and Tiruchi, house over 60 GCCs. This showcases the distributed growth of the State.
According to a study by Colliers, a commercial real estate services firm, although Bengaluru and Hyderabad have collectively driven over 60% of GCC leasing since 2021, demand from capability centres in India is becoming broad-based. Other Tier I cities continue to leverage competitive costs and specialised industry ecosystems to attract global firms. While Bengaluru and Hyderabad are likely to continue to be preferred by technology GCCs, Mumbai and Pune will anchor BFSI operations. Similarly, Chennai is likely to increasingly attract GCCs from the engineering and manufacturing sectors.
MoUs to drive growth
The TVK government has signed a slew of MoUs in the GCC space at the Vettri Tamil Nadu Investment Conclave. To cite an example, Bosch Global Software Technologies and TIDCO signed an MoU to establish a Global Software Development Centre focused on automotive software and autonomous systems, with R&D and engineering operations. It is expected to come up either along OMR or the Mount-Poonamallee corridor.
Chubb, a global insurance company, signed an MoU in July to expand its insurance operations through a GCC in Chennai. The new centre will handle claims processing, AI-driven underwriting, fraud detection and captive operations serving Chubb’s Asia-Pacific portfolio.
Nordex, the German wind turbine manufacturer and a global leader in renewable energy technology, signed an MoU to establish a significant GCC in Chennai focused on product engineering and technology innovation. More recently, during his visit to the United Kingdom, Chief Minister C. Joseph Vijay signed an agreement with Ernst & Young (EY) to establish a GCC in Tamil Nadu, entailing an investment of ₹1,000 crore.
Those tracking the real estate sector say these investments will lead to significant growth in leasing activity in the coming months.
Jacob says these GCCs are not support centres or back-office operations, but encompass much more. For instance, existing GCCs such as Ford design powertrains for cars sold in 150 countries; Bosch develops autonomous driving technology; Standard Chartered runs mission-critical, 24/7 banking operations; KLA’s algorithms advance global semiconductor manufacturing; and AstraZeneca discovers medicines with a global reach. These are strategic, high-innovation functions that multinational enterprises cannot outsource.
Tamil Nadu has also been attracting first-time India GCC entrants — companies establishing their first India operations in the State. SMBC (Sumitomo Mitsui Banking Corporation), Japan’s second-largest bank, established a significant GCC in Chennai focused on trade finance, banking operations and technology infrastructure for Asia-Pacific clients. HD Supply, a leading industrial and construction distributor, chose Chennai for its India GCC to optimise supply chain operations and develop digital commerce platforms serving India’s infrastructure and construction sectors. SES (Société Européenne des Satellites), the Luxembourg-based satellite and space technology company, has set up a technology centre in Chennai for satellite communications, IoT solutions and space technology applications serving Asia-Pacific markets.
Demand and pricing
GCCs are looking for spaces starting from 30,000 sq.ft. and going up to several lakh sq.ft. “In Chennai, most moderate-sized GCCs typically opt for conventional office spaces between 30,000 and 50,000 sq.ft., seeking stability and tailored infrastructure for their business needs. Meanwhile, smaller-scale GCCs entering Chennai favour flex spaces, which provide reduced upfront costs, shorter commitments and the ability to scale during their early operational phase,” Kingsley adds.
Chennai’s Grade A rents are still around ₹76 to ₹78 per sq.ft., which gives it a significant cost advantage over markets such as Bengaluru and Hyderabad.
Improvement in infrastructure
With GCC corridors being proposed, industry stakeholders have urged the government to strengthen infrastructure in these regions. One key concern is the need to expedite Metro Rail projects, as roads in several areas remain in poor condition due to ongoing digging work. Last-mile connectivity and public transport also need to be improved. Beyond office space, GCC clusters require good schools, hospitals, hotels, serviced apartments, restaurants, retail and recreational facilities. The government should consider developing this supporting infrastructure alongside GCC hubs. Drainage, water supply and flood mitigation should be treated as core infrastructure.
Krishnan said there is evidence of an employment-led real estate multiplier effect, although it is difficult to attribute price appreciation entirely to GCCs. The pattern was evident during the IT revolution in locations such as OMR in Chennai, Whitefield in Bengaluru and Gachibowli in Hyderabad.
A similar trend is now emerging in Chennai, she said. Average residential capital values increased from around ₹4,935 per sq.ft. in 2020 to ₹7,100 per sq.ft. in 2025, an increase of about 44%. South Chennai, including the OMR/ GST growth belt, accounted for around 78% of residential launches and 66% of sales in 2025.
