News release

Real estate demand surges in India’s BFSI sector

Projected to surpass 2023 leasing record of over 11 mn sq ft, in 2024

November 04, 2024

Arundhati Bakshi Dighe

+91 98193 90900

MUMBAI, NOVEMBER 04, 2024: The Banking, Financial Services, and Insurance (BFSI) sector has seen a surging demand for office spaces, emerging as the second-largest occupier in India, following the IT/ITeS sector. According to JLL India, the sector is on a robust growth trajectory, driven by rapid technological advancements, talent availability and evolving market dynamics.

The BFSI sector has been consistently growing its share in India's overall gross office leasing. The sector's share in office leasing has increased from an average of approximately 11% in the 2017-2019 period to 17-18% over the last few years. Until the third quarter of 2024, office leasing in the BFSI sector accounted for 16.4% of the 53.4 million sq ft total gross leasing, across the country's top seven cities (Mumbai, Delhi NCR, Kolkata, Bengaluru, Chennai, Hyderabad and Pune). Global players have been at the forefront of this expansion, dominating over 65% of the BFSI sector’s activity in India. On average, these international entities have accounted for two-thirds of all office space leased by the sector over the past six years.

Mumbai, known as the "financial capital of India," leads the pack, accounting for approximately 44% of the total space occupied by domestic financial organisations. Bengaluru is seen as the preferred hub for foreign organisations with a 30% share, reflecting its unparalleled tech ecosystem that attracts top talent and financial services organisations from across the globe. Mumbai, Bengaluru and Hyderabad account for over 50% of the total space leased by the BFSI sector in the country, while Delhi NCR also makes its presence felt with 18% share of domestic and 17% share of international BFSI companies' leasing space.

"India's BFSI sector is experiencing remarkable growth, with significant opportunities for the office real estate market. The country's fintech market, currently valued at $584 billion, is projected to reach approximately $1.5 trillion by 2025. This expansion is reflected in the increasing presence of global capability centres (GCCs) across India. The BFSI industry already accounts for a substantial 20% share of these GCCs. With over 1,900 GCCs offering end-to-end services, India is poised for further growth in this sector, driving continued demand for office spaces." said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

"The BFSI sector is spearheading India's economic growth, driving innovation and digital transformation. As the sector evolves, we anticipate continued robust demand for office spaces that can support innovation, attract top talent, and meet evolving consumer demand. The overall BFSI segment leased over 11 mn sq ft in 2023, the highest ever and is on track to surpass that number in 2024. We are already seeing that the tech cities of Bengaluru, Hyderabad, Chennai and Pune account for over 80% of all BFSI GCCs’ demand while domestic BFSI demand is driven by Mumbai and Delhi NCR which together account for a ~65% share. The sector's dynamic needs present significant opportunities for the real estate industry to create sophisticated, technology-enabled workspaces that cater to the unique requirements of financial institutions," said Dr. Samantak Das, Chief Economist and Head – Research and REIS, India, JLL.

Looking ahead:

This rapid expansion, complemented by technological advancements, available talent pool and evolving infrastructure across cities indicate a very positive future outlook for the BFSI sector in India. The ongoing digital revolution, facilitated by government initiatives like UPI and adoption of emerging technologies like AI, blockchain, and cloud computing will accelerate the sector's evolution, necessitating adaptable and future-ready workspaces.

This will be strengthened by the increasing demand for professional talent. JLL anticipates that the need for specialised skills in areas such as data science, cybersecurity, etc. will influence office location and design choices within the sector and the growing focus on sustainability and ESG goals will only enhance the rising needs.


About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About JLL India 

JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across ten major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 15,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in