What Opportunities Do REITs Present in Indian Office Spaces?
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Synopsis
The Indian REIT market shows immense potential as only a fraction of REIT-worthy office spaces are currently listed. This article dives into the growth trajectory, investment opportunities, and the future landscape of REITs in India’s top cities.
Key Takeaways
- India's REIT market has a vast potential for growth.
- Only 23% of eligible office stock is currently listed.
- Bengaluru, Hyderabad, and Chennai lead in available REIT-worthy office spaces.
- Strong leasing activity is driving appreciation in office REITs.
- The future is bright for new REIT listings in India.
Mumbai, June 19 (NationPress) Real estate investment trusts (REITs) in the leading seven Indian cities have listed only 23 percent of the total REIT-eligible office stock, valued at 520 million square feet, in their portfolios, indicating vast potential for growth, as per a recent report released on Thursday.
In terms of value appreciation, India's office REITs have demonstrated impressive performance over the past year (as of June 16, 2025), fueled by strong leasing activities and consistent rental increases.
Although India entered the REIT market later than others, it has witnessed its market capitalization exceed that of several established economies with developed REIT frameworks, according to the latest data from Anarock Research.
The three publicly listed Indian REITs—Embassy Office Parks, Mindspace Business Parks, and Brookfield India—collectively manage a portfolio of merely 117.2 million sq ft, representing just 23 percent of the total REIT-capable office space in India, as noted by Anuj Puri, Chairman of Anarock Group.
This highlights substantial opportunities for new REIT listings and consolidation within the office market in the top seven cities, he added.
With approximately 313 million sq. ft., Bengaluru, Hyderabad, and Chennai currently possess the highest volume of REIT-worthy office stock. However, only 18 percent of this is included in REIT portfolios.
In northern India, the Delhi-NCR region holds 82 million sq ft of REIT-worthy stock, with just 30 percent listed.
The Mumbai Metropolitan Region (MMR) and Pune collectively have 118 million sq ft of REIT-capable office stock, with only 27 percent listed.
Data trends from 2023 indicate that the overall REIT-eligible office stock in these top seven cities was nearly 383 million sq ft.
“This has increased by 36 percent since then, reaching approximately 520 million sq. ft. currently, mainly due to generous new office supply and the upgrading of older Grade A office stock to meet modern demand and standards,” Puri stated.
Point of View
It is evident that the Indian REIT market is on the cusp of significant transformation. With only a fraction of potential listings currently in play, the future of office spaces managed by REITs is promising. Data shows that the demand for quality office spaces is rising, and this trend will likely bolster investment opportunities in the coming years.
NationPress
19/06/2025
Frequently Asked Questions
What are REITs?
REITs, or Real Estate Investment Trusts, are companies that own, operate, or finance income-producing real estate across a range of property sectors, allowing investors to earn a share of the income produced without having to buy, manage, or finance any properties themselves.
How much office space is currently REIT-listed in India?
As of now, only 23% of the total REIT-worthy office stock, valued at 520 million square feet, is listed within the portfolios of Indian REITs.
Which cities in India are leading in REIT-worthy office stock?
Bengaluru, Hyderabad, and Chennai currently host the largest amounts of REIT-worthy office stock, with a combined total of approximately 313 million sq. ft.
What has contributed to the growth of REITs in India?
The growth of REITs in India has been driven by strong leasing activity, consistent rental increases, and significant new office supply, alongside the upgrading of older Grade A office spaces.
What is the future outlook for REITs in India?
The future outlook for REITs in India is optimistic, with ample opportunities for new listings and market consolidation, especially given the current underrepresentation of available office spaces in REIT portfolios.
