A new report projects that the Ahmedabad-GIFT City corridor could attract 40 to 50 new Global Capability Centres. This growth is expected to drive demand for up to 6 million square feet of office space, fueled by lower operating costs and a large talent pool compared to traditional tech hubs.
The Ahmedabad-GIFT City corridor is emerging as a potential powerhouse for Global Capability Centres (GCCs), with new projections suggesting the region could attract 40 to 50 new centers. According to a joint report by Dev Accelerator (DevX) and Anarock Property Consultants, this expansion is expected to create over 50,000 high-skilled jobs and generate demand for 4 to 6 million square feet of Grade A office space.
This trend signals a possible shift in how global firms select their Indian operational bases. While cities like Bengaluru and Hyderabad have long dominated the GCC sector, companies are now looking for alternatives that offer a balance of infrastructure and cost efficiency. The region currently hosts a tech talent pool of 90,000 to 95,000 professionals, supported by an annual output of 55,000 to 60,000 graduates from institutions like IIM Ahmedabad and IIT Gandhinagar.
The Cost and Infrastructure Factor
A primary driver for this potential influx is the cost advantage. Net effective occupancy costs in the Ahmedabad corridor are approximately ₹147 per square foot per month, which represents a 30% to 35% cost saving compared to established Indian tech markets. This financial efficiency, paired with lower attrition rates of 7% to 12%, provides a compelling case for firms looking to manage operational expenses while scaling their teams.
Furthermore, the status of GIFT City as India's first operational International Financial Services Centre (IFSC) provides a specialized regulatory and physical infrastructure that is attractive to financial and technology consulting firms. This setup aims to provide a different value proposition compared to traditional commercial business districts.
Challenges and Risks to Watch
Despite the optimistic outlook, the region faces several practical hurdles that investors and businesses should monitor. The growth is heavily dependent on sustained government policy support, and any changes to these frameworks could alter the region's appeal to multinational firms. Additionally, rapid corporate expansion requires matching infrastructure; there is a risk that if commercial development outpaces connectivity projects like metro and transit links, it could create strain on local facilities.
There is also the challenge of competition. Several other Indian states are actively implementing dedicated policies to attract GCC investment, which could make the battle for market share more intense. Investors should also note the risk of potential market saturation if the supply of new office space is built faster than companies can actually occupy it.
Looking ahead, the next phase of this development will depend on the speed of infrastructure delivery and the ability of the region to maintain its cost advantage. Monitorables include major leasing announcements by multinational firms, updates on the Gujarat GCC Policy 2025-30, and the pace of office space absorption in the coming quarters.