Foreign BFSI Firms Turn to India for GCCs

Foreign banking, financial services and insurance (BFSI) companies are increasingly turning to India to establish their Global Capability Centres (GCCs). The growing preference is also driving demand for commercial office space across the country. According to real estate consultancy Knight Frank India, foreign BFSI firms leased a record 7.32 million sq. ft. of office space during January-June this year. The trend highlights the growing importance of India as a global hub for financial services operations, technology and other corporate functions.

At the same time, foreign IT and IT-enabled services (IT-ITeS) companies recorded a decline in office leasing for GCC operations. These firms leased around 4.13 million sq. ft. during the first half of the year, compared with 5.71 million sq. ft. during the corresponding period a year earlier. The contrasting trends indicate a shift in the composition of GCC-related office demand, with BFSI companies emerging as an increasingly important source of leasing activity in India’s commercial real estate market.