Synopsis
In 2024, global capability centres (GCCs) significantly led the BFSI sector in India, with record commercial real estate leasing. The sector leased 13.45 million square feet, capturing a 17.4% share of annual leased space, surpassing previous records.Key Takeaways
- GCCs drove BFSI leasing in India.
- BFSI sector leased 31 million sq ft from 2022-2024.
- Global firms accounted for 59.0% of BFSI leasing.
- Domestic firms leased 12.7 million sq ft.
- Mumbai remains the financial capital of India.
Mumbai, March 24 (NationPress) In 2024, a landmark year for the banking, financial services, and insurance (BFSI) sector in India's commercial real estate, was driven by global capability centres (GCCs). The sector leased an impressive 13.45 million square feet (sq ft), capturing a 17.4 percent share of the total annual leased space, as revealed in a report released on Monday.
Interestingly, the BFSI segment has leased 31 million sq ft of office space during the three-year period from 2022 to 2024, surpassing the 29 million sq ft leased in the preceding six years from 2016 to 2021, according to JLL's analysis.
Global BFSI companies represented a substantial 59.0 percent of the total space leased by the BFSI sector within this timeframe.
Key factors driving the BFSI sector's growth include India's robust talent pool, ongoing digitization efforts, financial inclusion, and strong consumption potential.
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, stated, “Global firms, especially GCCs, are fueling this growth, contributing 59 percent of BFSI leasing over the past three years. This data highlights BFSI's critical role in transforming India's office market and the country’s rise as a global financial services hub.”
Domestic companies have also made significant strides, leasing 12.7 million sq ft across the top seven cities between 2022 and 2024, as mentioned by Das.
Robust domestic demand for BFSI space has propelled markets like Mumbai, while global firms have been the main drivers in other major office markets across the nation.
GCC establishments, whether newly created or expanding existing headcounts, have been at the forefront of leasing activities by global firms in India.
Since 2022, GCCs have leased a total of 67.4 million sq ft, with BFSI accounting for 20.7 percent. In 2024, the BFSI share in GCC leasing increased to 25.2 percent, solidifying its position as the second-largest component after technology, the report noted.
Mumbai continues to uphold its status as the financial capital, while Delhi-NCR benefits from its strategic location and infrastructure.
Bengaluru's thriving tech ecosystem attracts fintech innovators, Hyderabad capitalizes on its strong IT and pharma sectors, Chennai is establishing itself as a southern BFSI hub, and Pune is emerging as a prominent BFSI GCC hub.
“Cities like Pune and Chennai have seen global BFSI firms contribute a 68-72 percent share of leasing activity in this segment, while Delhi NCR accounted for a 60 percent share of global BFSI companies during the same period,” reported Rahul Arora, Head of Office Leasing and Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
