BFSI Office Leasing Hits 10 Million Sq Ft in 2023: CBRE

New Delhi, Dec 14 (PTI) The Banking, Financial Services and Insurance (BFSI) sector has taken on lease nearly 10 million square feet office space during January-September this year, the highest in a decade, across eight major cities, according to CBRE.

The significant rise in leasing was on account of higher demand from both global and domestic players.

The leasing of office space by BFSI stood at 6.5 million square feet in the entire 2018 calendar year; 7 million square feet in 2019; 5.8 million square feet in 2020; 5.5 million square feet in 2021, and 6.9 million square feet in 2022.

Real estate consultant CBRE said the total leasing by the BFSI sector stood at 9.8 million square feet in the January-September period of this year as against 9.89 million square feet by technology players. The data is of Mumbai, Bengaluru, Hyderabad, Delhi-NCR, Pune, Chennai, Ahmedabad and Kolkata.

"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," Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, said.

Domestic banks are actively seeking skilled professionals in areas such as sales, wholesale banking, and treasury, signalling a dynamic era of growth and opportunity in the financial landscape, he added.

Additionally, Magazine said global BFSI firms are poised to embrace hybrid working models, prioritising office-based work to foster in-person collaboration, innovation, and flexibility.

"Fundamental changes are currently reshaping the banking and finance sector, emphasising digital transformation, workforce considerations, and a commitment to environmental, social, and governance (ESG) priorities. Consequently, there has been a consistent increase in demand for contemporary and top-tier office spaces from the BFSI sector," Realty firm Reach Group Vice President Nandini Taneja said.

Cities like Gurugram are experiencing a revival in demand, driven by substantial space acquisitions by both domestic and multi-national banks and financial institutions, particularly in key business hubs, she added.