Karnataka’s ambitious GCC policy set to transform innovation and real estate landscape

Karnataka’s draft Global Capability Centre (GCC) policy is poised to position the state as a global innovation hub by introducing GCC-specific incentives and establishing three Global Innovation Districts. These districts are expected to catalyse investments and significantly boost real estate activity, particularly in north Bengaluru.

Chief Minister Siddaramaiah announced on November 19 that the first of these districts, the Bengaluru GCC District, will be part of the Knowledge, Wellbeing, and Innovation City (KWIN City). Located 45 minutes from Kempegowda International Airport, the 2,000-acre KWIN City will serve as a cutting-edge innovation and research hub, strategically situated between Dobbaspete and Doddaballapur along the Satellite Town Ring Road (STRR).

Bengaluru’s office market is heavily driven by GCCs, which account for nearly 50% of the city’s Grade A office demand, according to Vimal Nadar, Senior Director & Head of Research at Colliers India. He forecasts an annual uptake of 8–10 million square feet of GCC office space in the coming years. North Bengaluru, with its proximity to KWIN City and the international airport, is expected to see a significant uptick in commercial activity.

Recent data from Cushman and Wakefield shows that north Bengaluru absorbed 1.1 million square feet of Grade A office space in Q3 2024, making it one of the city’s most dynamic commercial zones. Whitefield, an established IT hub, led with 2.1 million square feet of absorption during the same period.

The new policy aims to decentralize GCC growth by fostering hubs in Mysuru, Mangaluru, and Belagavi. These emerging hotspots will benefit from Karnataka’s supportive ecosystem, encouraging companies to diversify their operations beyond Bengaluru. The proposed dedicated parks for GCCs in these cities will create modern infrastructure and attract global firms.

Flex workspaces are becoming a critical part of GCC expansion strategies. These spaces offer agility, cost efficiency, and scalability, making them ideal for companies adopting the “hub-and-spoke” model. This distribution network allows businesses to establish a central hub while setting up smaller satellite offices in Tier II cities.

Manish Khedia, Managing Director at The Executive Centre, emphasized the increasing demand for premium, tech-enabled office spaces that align with the needs of GCCs. As global players seek high-quality infrastructure, developers and landlords are likely to benefit from heightened occupancy rates and growing interest in flexible workspaces.

With the establishment of KWIN City and enhanced connectivity, north Bengaluru is set to become a major economic and innovation hub. This region will attract significant investments in commercial, residential, and infrastructure projects, driving sustained economic development in Karnataka.

By integrating innovation, policy support, and infrastructure development, Karnataka’s GCC policy is poised to solidify the state’s reputation as a leader in global business and technological advancement.