The BFSI (banking, financial services, and insurance) sector is experiencing a significant rise in demand for office spaces in India, ranking just below the IT/ITeS sector in leasing activity. JLL's latest report reveals that BFSI’s share in office leasing has grown from an 11 percent average in 2017-2019 to around 17-18 percent recently. By the third quarter of 2024, the sector had leased 16.4 percent of the total 53.4 million square feet across seven key cities, including Mumbai, Delhi NCR, and Bengaluru.
Mumbai remains a leading location, accounting for about 44 percent of office space for domestic financial firms, while Bengaluru attracts international BFSI firms, which drive over 65 percent of the sector's leasing activity. India's fintech market, valued at $584 billion, is projected to reach $1.5 trillion by 2025, fueling demand for global capability centers (GCCs) across the country. Currently, BFSI makes up around 20 percent of these 1,900-plus GCCs.
Experts note that Mumbai, Bengaluru, and Hyderabad account for over half of all BFSI leasing activity, with Delhi NCR also holding a notable share. The sector’s growth, particularly in tech hubs like Bengaluru and Hyderabad, suggests strong future demand for office space, positioning India as a key financial services center.
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