BFSI sector leasing projected to be over 11 million square feet in 2024: JLL

The banking, financial services, and insurance (BFSI) sector in India is projected to exceed last year's record of approximately 11 million square feet (msf) in office leasing, according to JLL. Between January and September 2024, BFSI leasing accounted for around 8.8 msf, representing 16.4% of India's total gross leasing of 53.4 msf. Major demand is concentrated in tech cities like Bengaluru, Hyderabad, Chennai, and Pune, which together contribute over 80% of the demand for global capability centres (GCCs). Domestic demand is primarily driven by Mumbai and Delhi NCR, which collectively hold about 65% of the market share.

The BFSI sector has emerged as the second-largest office space occupier in India, following the IT and IT-enabled services sector. Its share of gross office leasing has grown from approximately 11% during 2017-2019 to 17-18% in recent years across major cities. Global players constitute about 65% of the leasing activity, with international entities leasing two-thirds of the sector's office space over the past six years. The fintech market is also booming, projected to grow from US$ 584 billion to US$ 1.5 trillion by 2025, further driving demand for office spaces as India hosts over 1,900 GCCs that provide comprehensive services.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.