How has the IT and BFSI sector impacted commercial real estate growth?

IT and BFSI (Banking, Financial Services, Insurance) have long been pillar industries for India’s commercial real estate sector:

• High Volume Leasing: IT-BPM companies and BFSI firms routinely lease large floor plates, sometimes exceeding 100,000 sq. ft. This scale cements their status as core drivers of office demand across major metros like Bangalore, Mumbai, Delhi-NCR, and Hyderabad.
• Workforce Concentration: Both sectors employ millions of white-collar professionals, necessitating grade-A office environments with state-of-the-art infrastructure, robust IT connectivity, and proximity to residential hubs.
• Global Capacity Centers (GCCs): MNCs establish back-office operations for finance, accounting, data processing, or tech support. The synergy between BFSI processes and tech solutions amplifies leasing activity, especially in IT parks and SEZs.
• Higher Rental Yields: Landlords value BFSI and IT tenants for long-term leases, often spanning 5–9 years with escalation clauses. This stability contributes to attractive rental yields and lower vacancy rates.
• Spillover Effect: The success of BFSI and IT also stimulates retail, hospitality, and transportation sectors around commercial clusters, fostering comprehensive economic growth.

Overall, IT and BFSI remain the backbone of India’s commercial market, consistently expanding their footprints and uplifting real estate values.