The office leasing in the Banking, Financial Services and Insurance (BFSI) sector in the first nine months of 2023 was the highest in the last ten years, according to a report released by real estate consultancy CBRE South Asia Pvt Ltd on Thursday. Within the sector, demand for office spaces was led by Global Capability Centres (GCCs).
“This notable upswing was primarily driven by the robust performance of BFSI companies, supported by their multi-year low non-performing loans and sufficient capital and liquidity reserves,” the report titled “BFSI firms turbocharging Indian Office Realty” said.
“Well-capitalized banks further supported the rapid growth of the fintech sector, expanding presence of e-payment service providers and the sustained expansion efforts of global BFSI majors establishing their GCCs in India.”
The data in the report suggested that the total office leasing in the top eight cities in India touched 10 million square feet (msf) during the period. These cities were Mumbai, Bangalore, Hyderabad, Delhi, Pune, Chennai, Ahmedabad and Kolkata.
In the six cities, which are also hubs for the IT sector, GCC leasing by BFSI firms dominated more than half of the sector’s total office leasing during January-September 2023 with 5.7 msf. It was 256 per cent higher than 1.6 msf during January-September 2022. These six cities did not include Kolkata and Ahmedabad.
Mumbai was the frontrunner in BFSI office leasing with a 30 per cent share in overall leasing with 9.8 msf since 2018. It was followed by Bangalore with a 20 per cent share, Hyderabad (15 per cent), Delhi-NCR (11 per cent) and Pune (11 per cent).
Anshuman Magazine, chairman and chief executive officer (India, South-East Asia, Middle East & Africa) at CBRE, said, “In light of the BFSI sector’s robust performance and significant leasing impact, the way forward is promising. The sector’s resilience, coupled with the rise of digital infrastructure needs and diverse financial services, will fuel strong hiring in the coming months.”
“As the BFSI workforce increasingly values the fusion of technology and financial skills, the evolution of GCCs in India into second headquarters calls for a multi-generational agile workforce,” said Ram Chandnani, managing director (Advisory & Transactions Services) at CBRE India.
“This dynamic workforce seeks cross-functional, future-ready workplaces that serve as hubs for collaborative synergies and creative problem-solving. Although the BFSI sector has historically been cautious in adopting flexible spaces, we anticipate a notable shift in this trend.”