How Chennai’s GCC expansion could reshape its real estate market

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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 Jacob Managing 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.