India’s Banking, Financial Services, and Insurance (BFSI) sector is emerging as a key driver of the country’s commercial real estate market, witnessing an unprecedented surge in office space leasing. From 2022 to 2024, BFSI firms leased approximately 31 million sq. ft of office space—surpassing the 29 million sq. ft leased in the previous six years (2016-2021).
This leasing boom is fuelled by India’s growing digital economy, financial inclusion initiatives, and a robust talent pool, according to JLL’s latest report, “Banking on Real Estate – A Guide to Transforming Office Spaces for BFSI Companies.” The year 2024 marked a milestone, with BFSI firms leasing 13.45 million sq. ft, accounting for 17.4% of total annual office space leased. This positioned the sector as the third-largest occupier in India’s commercial real estate landscape, following the Technology sector and Flexible workspace providers.
Global and Domestic BFSI Firms Driving Growth
Both global financial institutions and domestic BFSI firms are contributing to this expansion. Notably, Global Capability Centers (GCCs) accounted for 59% of BFSI leasing in the past three years, underscoring India’s growing role as a global financial services hub. Many multinational financial firms are expanding their back-office operations and tech-driven financial services, further fueling demand for office spaces.
Meanwhile, domestic BFSI firms leased 12.7 million sq. ft across India’s top seven cities, reinforcing Mumbai’s dominance as the country’s financial capital. The city alone accounted for over 25% of BFSI office leasing, primarily driven by Indian banks and financial institutions.
India’s Leading BFSI Hubs
Several Indian cities are evolving into specialized BFSI hubs, each offering unique advantages:
Mumbai – India’s financial capital remains the top choice for BFSI firms, with areas like Bandra Kurla Complex (BKC), Nariman Point, and Lower Parel leading leasing activity.
Delhi NCR – The region’s strategic location and infrastructure make it a preferred destination for finance-based startups and established institutions, particularly in Cyber City (Gurugram) and Noida Expressway.
Bengaluru – A rising fintech powerhouse, attracting BFSI firms to its tech corridors like Outer Ring Road and Whitefield.
Rahul Arora, Head – Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL, emphasized the shifting real estate trends in the BFSI sector:
“Between 2022 and 2024, global BFSI firms dominated leasing in tech hubs like Bengaluru and Hyderabad, capturing up to 85% of the market. Meanwhile, Mumbai remained the stronghold for domestic financial institutions, securing 75% of BFSI leases. Pune and Chennai saw 68-72% of BFSI leasing driven by global firms, while Delhi NCR recorded a 60% share. These trends highlight India’s increasing prominence as a global financial and technology hub.”
The Future of BFSI-Driven Commercial Real Estate
The BFSI sector’s growth is being powered by India’s rapid digital transformation, fintech expansion, and AI-driven financial services. Government initiatives like UPI and digital banking frameworks are accelerating financial inclusion, driving demand for technology-enabled office spaces.
India’s fintech market, valued at $584 billion in 2022, is projected to reach $1.5 trillion by 2025, further reinforcing the need for agile, innovation-focused office spaces. As BFSI leasing continues its upward trajectory, the sector is expected to play a critical role in shaping India’s commercial real estate future, solidifying the country’s position as a global financial powerhouse.
