India’s banking, financial services, and insurance (BFSI) sector has set a new benchmark in commercial real estate, leasing an impressive 13.45 million square feet in 2024 alone. This surge, primarily led by Global Capability Centers (GCCs), accounts for 17.4% of the total annual leased space, according to a recent report by JLL.

Over the last three years (2022-2024), the BFSI sector leased 31 million square feet of office space—outpacing the 29 million square feet in the six years from 2016 to 2021. Global BFSI firms dominated this growth, accounting for 59% of the sector’s leasing activity.

“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,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Several factors fuel this expansion, including India’s strong talent pool, rapid digitization, increasing financial inclusion, and a growing consumer base. These elements collectively make India an attractive hub for global BFSI firms seeking expansion.

While GCCs remain at the forefront of this leasing activity, domestic BFSI firms have also contributed significantly, leasing 12.7 million square feet across India’s top seven cities between 2022 and 2024. Mumbai, the country’s financial capital, has witnessed strong demand from domestic firms, while global players continue to drive leasing activity in other key office markets.

With India cementing its position as a preferred destination for financial services operations, the BFSI sector’s real estate footprint is expected to expand further, reinforcing its role as a key driver of the country’s commercial property market.