Banking on Real Estate

The growth story

India’s Banking, Financial Services, and Insurance (BFSI) sector has witnessed remarkable growth in the last few years. The banking industry recorded a 31.57% y-o-y growth in 2023 and is geared up to sustain this momentum this year as well. 

India is amongst the fastest growing FinTech Markets in the world. As of 2024, its market value is estimated to be around USD 110 billion. By 2029, this value is projected to reach around USD 420 billion at a CAGR of 31%. 

This growth 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 seen tremendous growth within the country, disrupting traditional banking models by offering innovative solutions like mobile payments and digital investments. With smartphones and internet being adopted on a mass basis, the shift towards cashless transactions has been rapid. Research indicates that digital payments are expected to reach USD 10 trillion by 2026, encompassing nearly 65% of all transactions. In fact, The Unified Payments Interface (UPI) has facilitated over 6.58 billion financial transactions.

To add to this, emerging technologies like blockchain, cloud computing, AI and Machine Learning are also being leveraged to enhance customer experiences, automate processes, and improve risk management.

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 1,900 GCCs, with the BFSI sector taking up an impressive 20% share. This number is only expected to grow in the coming years. The sector is also the second-largest occupier of office space in India, second only to IT/ITeS. The sector has seen its share of gross leasing increasing from with its share of gross leasing increasing from 11% in 2017-2019 to 17-18% in the last two years. Last year, the overall segment leased over 11 million sq. ft., its highest ever, and is on-track to surpass that record in 2024. 

This rising demand for office space has been led by foreign organisations. These account for about two-thirds of office space leased by the sector over the last six 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. 

Our guide provides the insights BFSI and Fintech companies need to make informed decisions. 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.