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India's banking, financial services, and insurance (BFSI) sector has achieved a new milestone by leasing 13.4 million square feet of office space in 2024. This marks a significant increase from the 11 million square feet leased in 2023, according to a report by JLL.
The surge in office space leasing highlighted the sector's strong expansion and growing presence in India's commercial real estate market. The report noted that the growth of the BFSI sector is closely linked to India's booming fintech industry. Valued at USD 584 billion in 2022, the fintech market is expected to reach around USD 1.5 trillion by 2025. This rapid expansion is driving demand for office spaces, as companies continue to set up operations across the country. Another key factor contributing to the rising office space demand is the increase in global capability centres (GCCs) in India. The BFSI industry accounted for 23.5 per cent of GCC leasing in 2023-2024. Currently, India is home to over 1,950 GCCs, and this number is expected to grow further in the coming years. The report said "The BFSI sector is the second-largest occupier of office space in India, after IT/ITeS, proving its significance in the office space market". The sector's share of gross leasing has grown significantly, from an average of 11 per cent during 2017-2019 to 17-18 per cent in recent years. This trend indicated a strong future for BFSI in India's real estate market. Global players dominate the BFSI sector in India, accounting for nearly two-thirds of all office space leased by the industry over the past six years. This underscores the important role of real estate in supporting BFSI companies' growth strategies in India. Several Indian cities have emerged as BFSI hubs, each offering unique advantages. Mumbai remains the financial capital, while Delhi NCR benefits from its strategic location and strong infrastructure. Bengaluru's technology ecosystem attracts fintech startups, Hyderabad leverages its IT and pharma industries, Chennai is establishing itself as a key BFSI hub in South India, and Pune is emerging as a major centre for BFSI GCCs. With strong market demand and increasing investment, India's BFSI sector is expected to continue its upward growth trajectory in the coming years. (ANI)
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