India's BFSI Sector Booms with Record Office Space Leasing in 2024

India's BFSI sector leased 13.4 million square feet of office space in 2024, significantly more than the previous year. This growth aligns with the fintech boom and the rise of global capability centres. Key cities like Mumbai, Bengaluru, and Hyderabad are pivotal in this expansion, underscoring real estate's critical role.

India's banking, financial services, and insurance (BFSI) sector has set a new record by leasing 13.4 million square feet of office space in 2024, an increase from the 11 million square feet leased in 2023, as reported by JLL. This surge highlights the industry's robust expansion and growing influence in India's commercial real estate market.

The report attributes this growth to India's rapidly expanding fintech industry, valued at USD 584 billion in 2022 and projected to reach around USD 1.5 trillion by 2025. This sector's quick growth is fueling the demand for office spaces as companies expand operations nationwide. Additionally, the rise in global capability centres (GCCs) in India is a significant factor, with the BFSI industry responsible for 23.5% of GCC leasing in 2023-2024.

Designated as the second-largest office space occupier in India after IT/ITeS, the BFSI sector's share of gross leasing has jumped from an average of 11% during 2017-2019 to 17-18% in recent years. Global companies dominate, leasing two-thirds of the industry's office space in the past six years, emphasizing real estate's vital role in their growth strategies. Key cities like Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, and Pune have emerged as pivotal BFSI hubs.

(With inputs from agencies.)