BFSI Sector Becomes the Second Largest Office Space Occupier in India, JLL Report Reveals
According to real estate consultancy JLL India, the BFSI sector has rapidly expanded its office space footprint, increasing its leasing share from 11% in 2017-2019 to around 17-18% in recent years, driven by technological advancements and a growing talent
Bfsi SectorOffice SpaceReal EstateJll IndiaFintechReal Estate PuneNov 04, 2024
As of Q3 2024, BFSI leasing constituted 16.4% of the total 53.4 million square feet of office space leased across India’s top seven cities Mumbai, Delhi NCR, Kolkata, Bengaluru, Chennai, Hyderabad, and Pune. Global players have been the primary force behind this expansion, occupying about 65% of the sector’s leased space. These international entities have steadily driven demand, averaging two-thirds of the BFSI sector’s leasing over the past six years.
Mumbai leads in office space occupied by domestic financial organizations, holding a 44% share, which solidifies its status as India’s “financial capital.” Bengaluru, on the other hand, attracts international financial players with its strong tech ecosystem, accounting for 30% of foreign BFSI office occupancy. Together with Hyderabad, these cities contribute over 50% of the total BFSI office leasing in India, with Delhi NCR also notable, commanding an 18% share for domestic firms and 17% for international players.
Industry leaders attribute the surge in demand to the rapidly growing fintech sector, currently valued at USD 584 billion and projected to reach USD 1.5 trillion by 2025. Rahul Arora, Head of Office Leasing & Retail Services at JLL India, highlighted that the BFSI sector’s growth is directly fueling the real estate market. “With over 1,900 Global Capability Centres (GCCs) and BFSI’s significant 20% share in these centers, India is poised for further expansion, boosting demand for sophisticated office spaces,” he said.
JLL’s Chief Economist, Dr. Samantak Das, noted that the sector’s needs are evolving, creating opportunities for office real estate to cater to specialized requirements in areas like data science and cybersecurity. Das stated that BFSI is expected to surpass its record of 11 million square feet of leasing in 2023, thanks to expanding digital transformation and a skilled workforce pool.
India’s digital revolution, driven by initiatives like UPI and emerging technologies such as AI and blockchain, continues to shape BFSI’s trajectory. As sustainability and ESG goals become increasingly prioritized, the sector is poised to drive demand for adaptable, tech-enabled, and environmentally friendly workspaces that align with its dynamic growth needs.
Frequently Asked Questions
What is the current leasing share of the BFSI sector in India's office space market?
The BFSI sector's leasing share has increased to around 17-18% in recent years, compared to 11% in 2017-2019.
Which cities are leading in BFSI office space occupancy?
Mumbai leads in office space occupied by domestic financial organizations, while Bengaluru and Hyderabad together contribute over 50% of the total BFSI office leasing in India.
How much of the BFSI sector's leased space is occupied by global players?
Global players occupy about 65% of the BFSI sector’s leased space and have steadily driven demand, averaging two-thirds of the BFSI sector’s leasing over the past six years.
What is the projected value of the Indian fintech sector by 2025?
The Indian fintech sector is currently valued at USD 584 billion and is projected to reach USD 1.5 trillion by 2025.
What are the key factors driving the growth of the BFSI sector in India?
Key factors include technological advancements, a growing talent pool, the digital revolution, and the increasing importance of sustainability and ESG goals.
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