JLL BFSI Guide: Record 13.4M sq. ft leased in 2024

•  The Banking, Financial Services, and Insurance (BFSI) segment leased ~31 million sq. ft office space in the three-year period of 2022-2024, higher than even the ~29 million sq. ft leased in the previous six-year period of 2016-2021.
•  Global BFSI firms accounted for a significant ~59.0% share of space leased by the BFSI sector in the last three years.
•  Strong domestic BFSI space take-up drove demand in markets like Mumbai while global firms were the drivers in the other large office markets in India.

MUMBAI, 24 MARCH 2025: India's strong talent pool, digitization push, financial inclusion, and consumption potential are key drivers of the Banking, Financial Services & Insurance (BFSI) sector's growth in India. This growth is evident in the increasing demand for banking real estate and financial services real estate across the country. According to the JLL’s BFSI guide ‘Banking on Real Estate - A Guide to Transforming Office Spaces for BFSI Companies,’ the industry’s growth trajectory is striking. The year 2024 marked a historic high in India's office market leasing numbers, with significant strides made in the BFSI sector. Companies are increasingly looking to rent space for banks, bank branches and back offices for financial organisations, contributing to the overall surge in BFSI real estate demand. This trend underscores the sector's growing importance in shaping India's commercial real estate landscape.

“The year 2024 marked a watershed year for the Banking, Financial Services, and Insurance (BFSI) sector in India's commercial real estate. The sector leased 13.45 million sq. ft, claiming a 17.4% share of the annual leased space. This made BFSI the third-largest occupier, behind only the Technology sector and Flexible workspace providers. The sector's growth is stark: 31 million sq. ft leased in three years between 2022-2024 versus 29 million sq. ft in the preceding six years (2016-2021). Global firms, particularly GCCs, are driving this surge, as they accounted for 59% of BFSI leasing in the last three years. This data underscores BFSI's pivotal role in reshaping India's office market landscape and the country’s emergence as a global financial services hub. Domestic firms have also not remained far behind as they leased 12.7 million sq. ft across the top seven cities between 2022-24 as well,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

GCC set-ups, both new and headcount expansion in existing ones, have been at the forefront of the leasing activity by global firms in India. This is also reflected in the rising share of BFSI in the GCC leasing numbers across the country. Since, 2022, GCCs have leased 67.4 million sq. ft with BFSI accounting for a 20.7%. In 2024, BFSI share in GCC leasing rose to 25.2%, making it the second biggest component after Tech.

The major cities across India are emerging as specialized BFSI hubs, each with its unique strengths.Mumbai maintains its position as the financial capital, while Delhi NCR leverages its strategic location and infrastructure. Bengaluru's tech ecosystem is attracting fintech innovators, Hyderabad is benefiting from its strong IT and pharma sectors, Chennai is carving out its niche as a southern BFSI hub, while Pune is strongly emerging as a BFSI GCC hub.
"Our analysis reveals unique trends in real estate strategies for banking and financial services across India. From 2022 to 2024, global BFSI firms led real estate leasing in tech hubs like Bengaluru and Hyderabad, capturing up to 85% of the market. Meanwhile, Mumbai remained a stronghold for domestic financial institutions, which accounted for about 75% of BFSI leases in the city during this period. Markets like Pune and Chennai also saw global BFSI firms accounting for a 68-72% share in leasing activity by this segment while Delhi NCR had a 60% share of global BFSI companies for the same period. This spatial distribution underscores the evolving landscape of India's financial sector, where traditional strongholds coexist with growth centers for global financial operations," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL. “Mumbai retains its crown as the financial capital, accounting for over 25% of the nationwide BFSI office space leasing over the past three years. Bengaluru and Delhi NCR follow closely, each capturing 18-20% of the market, with Hyderabad, Chennai, and Pune rounding out the top tier. This hierarchical pattern reflects a strategic realignment that balances domestic financial depth with global technological integration, showcasing India's multifaceted appeal in the international BFSI real estate landscape," he added.

Mumbai: As India's financial capital, Mumbai remains the premier BFSI hub. Key areas like Bandra Kurla Complex (BKC), Nariman Point, and Lower Parel continue to attract major banks, financial services companies, and corporate headquarters.

Delhi NCR: The region's strategic location and infrastructure have made it a preferred destination for finance-based startups and established organizations. Connaught Place, Cyber City (Gurugram), and Noida Expressway are emerging as financial districts.

Bengaluru: Known for its technology ecosystem, Bengaluru is attracting financial institutions and fintech startups. The Central Business District, Outer Ring Road, and Whitefield are key areas for BFSI sector growth.

Hyderabad: With its strong technology and pharmaceutical industries, Hyderabad is seeing significant investments from financial institutions. HITEC City and the Financial District (Gachibowli) are focal points for BFSI businesses.

Chennai: Emerging as a significant BFSI hub in southern India, Chennai's growth is driven by its automotive, manufacturing, and IT sectors. Anna Salai and Old Mahabalipuram Road (OMR) are prime locations for BFSI companies.

Pune: The city’s strength lies in its talent pool availability and that has supported the strong showing in recent times as a major BFSI hub, especially being preferred by global players. Key nodes for BFSI players are Kharadi, Kalyani Nagar, Viman Nagar and Yerwada.

Government initiatives like the UPI have been instrumental in driving the digital transformation, bringing millions into the formal banking system. Emerging technologies such as AI, blockchain, and cloud computing are further accelerating the sector's evolution, creating demand for specialized skills and sophisticated, technology-enabled office spaces. The fintech market in India, valued at USD 584 billion in 2022, is projected to reach an astounding ~USD 1.5 trillion by 2025, underscoring the sector's explosive growth. As the sector evolves, demand for sophisticated, technology-enabled office spaces capable of supporting innovation and attracting top talent continues to rise. All the above, make a strong case for rising share of BFSI firms in the India office leasing landscape over the decade.

To know more about how we can partner with you to create real estate strategies that will enhance the growth of your financial organisation, visit https://www.jll.co.in/en/industries/financial-services?highlight=industries

JLL is India’s premier and largest professional services firm specializing in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 16,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in