Banking on Real Estate

The growth story

India’s Banking, Financial Services, and Insurance (BFSI) sector has witnessed a significant transformation over the last few years. The banking industry recorded a 31.57% y-o-y growth in 2023 and sustained the momentum in 2024 too. India’s fintech market, one of the fastest growing in the world, was valued at USD 584 billion in 2022 and is projected to reach an astounding ~USD 1.5 trillion by 2025.

2024 marked a watershed year for the BFSI sector in India's commercial real estate market. The sector leased an impressive 13.45 million square feet, claiming a 17.4% share of the annual space take-up. This positioned BFSI as the third-largest occupier, trailing only behind tech and flex sectors.

The growth is even more striking when we look at the longer-term trend. In just three years (2022-2024), the BFSI segment leased approximately 31 million sq ft - surpassing the 29 million sq. ft leased in the previous six-year period (2016-2021).

But what has driven this rapid rise?

The expansion of the sector has been fuelled by a confluence of factors, including the ongoing digital revolution, evolving customer demands and the availability of skilled talent across the length and breadth of the country.

Digital revolution

Fintech companies have risen remarkably in India, challenging traditional banking models with innovative solutions such as mobile payments and digital investments. The widespread adoption of smartphones and internet has accelerated the shift towards cashless transactions. Research projects digital payments to reach USD 10 trillion by 2026, encompassing nearly 65% of all transactions. Notably, the Unified Payments Interface (UPI) has facilitated over 6.58 billion financial transactions.

Moreover, new technologies like blockchain, cloud computing, Artificial Intelligence and Machine Learning are being harnessed to enhance customer experiences, streamline processes, and bolster risk management. This technological revolution is transforming the financial landscape, driving efficiency and creating new opportunities in the sector.

The burgeoning middle class

India’s rising middle class is not only driving demand for financial services but also provides for a rich talent pool for the BFSI sector. This young tech-savvy generation has education and skills across varied fields (from technology to business) has led to a significant rise in the number of skilled professionals. This when coupled with their higher disposable incomes leads to more demand for a range of new financial products and services.

Rising real estate demand

As the BFSI market expands, global capability centres are proliferating and the demand for sophisticated, technology-enabled office spaces is surging. India is already home to over 1,950 GCCs, with the BFSI accounting for 59% of the leasing in the last three years. Since 2022, GCCs have leased 67.4 million sq ft with BFSI accounting for a 20.7%. In 2024, BFSI share in GCC leasing rose to 25.2%, making it the second biggest component after Tech. Last year, the overall segment leased over 13.4 million sq ft, its highest ever, and is on-track to surpass that record in the coming years. 

This rising demand for office space has been led by foreign organisations. Global firms, particularly GCCs, accounted for 59% of BFSI leasing in the last three years. 

The growing market for BFSI and fintech companies has led to an increase in the demand for different real estate assets, ranging from corporate headquarters and branch offices to data centres and back-office operation centres. Each space has its unique needs, and it therefore becomes essential for companies to optimise their real estate strategies to meet dynamic workplace requirements. 

As the sector evolves, the demand for sophisticated, technology-enabled office spaces capable of supporting innovation and attracting top talent continues to rise. This trend suggests that BFSI firms will play an increasingly important role in India's office leasing landscape over the coming decade.

In our guide, we provide the insights BFSI and Fintech companies need to make informed decisions about their real estate strategy. Whether you are expanding your network, refining your existing portfolio, or planning a state-of-the-art headquarters, in our guide, you’ll find insights on several factors that can impact the way you find, design and manage your space. 

Key highlights of the guide include:

• Location strategy: Get a list of the top BFSI hotspots across India and choose a space in the city that will help your business grow.
  
  
• Space planning: Learn about the features and purposes of various office types to plan a space that will align with your strategic goal while helping you maintain a balanced real estate portfolio.
  
  
• Design: Explore how you can design your office space to seamlessly integrate the latest technology, be sustainable and balance functionality and aesthetics.
  
  
• Manage your space: Get tips on integrating flexible and smart facility management systems, with advanced technologies that will help you keep your workforce happy and productive.

Download our guide to transform your space. Discover how the right real estate strategy can drive innovation, attract top talent, and position your company for success in India's thriving financial landscape.