The banking, financial services, and insurance (BFSI) sector has emerged as a dominant force in India’s commercial real estate market, leasing a record-breaking 135 lakh square feet of office space in 2024 across seven major cities. According to a recent real estate consultancy JLL India report, this surge marks a significant increase from the 113 lakh square feet leased in 2023.

The report analyzed data from Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, and Pune, highlighting the BFSI sector as a key driver of office space demand alongside technology firms. “BFSI segment took on lease a record 135 lakh square feet in 2024 against 113 lakh square feet in the preceding year,” the report stated.

Over the last three years, the BFSI sector’s leasing activity has outpaced the total office space absorbed between 2016 and 2021. “The office space leased by the BFSI segment in the last three calendar years has surpassed the leasing in the preceding six years (2016-2021),” the report noted. Despite the rise in absolute numbers, its share in total gross leasing remained steady at around 17-18%.

In 2024, the total office space absorption increased to 77.2 million (772 lakh) square feet, up from 63 million (630 lakh) square feet the previous year. “Out of the total 135 lakh sq ft area leased by the BFSI segment last year, domestic BFSI contributed 31.7 per cent to the demand, while foreign entities lapped up 68.3 per cent,” the data showed, marking a shift from 2023, when domestic firms held a more significant 42.3% share, while foreign entities accounted for 57.7%.

The sustained growth in office space leasing underscores the BFSI sector’s expanding footprint in India’s flexible and traditional office markets. With increasing foreign investments and steady demand from domestic players, the segment is poised to remain a crucial component of the country’s commercial real estate sector in the coming years.