Business · India Bureau
Foreign BFSI firms drive India's GCC office leasing to record high
Banking, financial services and insurance companies from abroad are leading a surge in global capability centre office leasing across major Indian cities. The sector leased 7.32 million square feet in the first half of 2024, marking a 70 per cent increase year-on-year.
LSN India ·
Foreign banking, financial services and insurance (BFSI) firms have emerged as the primary drivers of office space demand for global capability centres (GCCs) in India, according to real estate consultancy Knight Frank. The sector leased 7.32 million square feet during January-June 2024 to establish GCCs across eight major cities, representing a significant 70 per cent jump from 4.31 million square feet recorded in the corresponding period last year.
The eight cities attracting this investment are Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad and Kolkata. During the first half of 2024, BFSI companies accounted for 36 per cent of the total 20.6 million square feet leased for GCCs across these leading urban centres.
The growth in BFSI leasing contrasts sharply with developments in the information technology and IT-enabled services sector. Foreign IT-ITeS companies saw their GCC-related office leasing decline 28 per cent to 4.13 million square feet in the first six months of 2024, down from 5.71 million square feet in the year-ago period. The shift underscores changing patterns in how multinational corporations are establishing their Indian operations and capability centres.