Why global banks are flocking to India

Global banks and financial firms expanding in India are lending a boost to the country’s office market.

Several major banks have announced plans this year to expand their operations and workforce in India, drawn by the country's competitive talent pool and strong economic growth potential.

India’s office market

The growing interest from major global investors in India's office market underscores the country's high growth potential, says Jeremy Sheldon, Head of Leasing and Client Partnerships, Asia Pacific, JLL.

A notable example is Blackstone’s planned acquisition of an 800,000-square-foot Mumbai office tower from India’s Adani Realty.

Behind the office demand lies a robust flow of deals. The country has outperformed other markets in the Asia-Pacific region and globally in terms of initial public offering (IPO) activity. In the first half of 2024, the country accounted for 27% of global IPOs, demonstrating strong year-on-year growth.

“Other markets have faced challenges related to investor confidence and liquidity, but India’s IPO activity has remained robust with strong investor appetite for new listings,” says Bridge. “It’s a clear indicator of a solid economic environment, which bodes well for India’s near-term outlook.”

Another key factor driving India’s office market is its substantial talent pool, which is essential for establishing global capability centers (GCCs) to manage critical corporate functions such as technology, human resources, and compliance.

“The country's abundance of skilled talent, with their strong language capabilities, provides a scalable solution for businesses seeking to expand their operations,” says Sheldon. “Additionally, India's increasing connectivity to the rest of the world ensures better integration with global financial markets."

India has seen a surge in GCCs, with the BFSI industry accounting for 20% of the total market, JLL data shows.