India's Office REITs: A Promising Future in Commercial Real Estate
India's Real Estate Investment Trust (REIT) market is rapidly growing, with nearly 140 million sq ft of office and retail real estate already listed. The potential for expansion is significant, driven by increasing demand from GCCs, tech, and BFSI sectors.
ReitsCommercial Real EstateOffice SpaceIndiaInvestmentReal EstateAug 26, 2025
Real estate consultant Colliers India noted that the REIT market in India is steadily progressing from a 'nascent' to an 'early growth' stage. The consultant stated that around 500 million sq ft of office assets are REIT-worthy, with the four listed office REITs currently encompassing close to 133 million sq ft of Grade A office space.
Additionally, about 371 million sq ft of office assets can potentially come under future REITs, further highlighting the market's potential. Retail real estate (shopping malls) stock under the existing REIT is around 5 million square feet.
'Office REITs in India are at an early growth stage. Rising demand from Global Capability Centres (GCCs), along with space uptake by technology and BFSI firms, is driving occupancy levels. This, in turn, is expected to accelerate the growth of office REITs in India,' said Badal Yagnik, Chief Executive Officer of Colliers India.
The report reaffirms the strong potential of India's REIT market and the growing depth of institutional participation in the office sector, according to Ramesh Nair, MD and CEO of Mindspace REIT. 'With nearly half of the country's Grade A office stock yet to be listed, the opportunity is immense. We are strengthening our portfolio across key markets to capture this growth,' Nair added.
Shirish Godbole, CEO of Knowledge Realty Trust REIT, commented, 'REITs in India have truly come of age -- evolving from a novel concept to a trusted, mainstream investment vehicle. The growing participation from both institutional and retail investors is a testament to the confidence in the asset class and the underlying fundamentals of India's commercial real estate sector.'
As a product, REITs offer the ideal blend of stability and growth. At present, there are five listed REITs: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and the latest Knowledge Realty Trust REIT.
Apart from Nexus Select Trust, which owns a large portfolio of retail real estate spaces, the other four REITs are backed by rent-yielding office assets. The potential for further growth and investment in India's REIT market is significant, driven by the robust demand from various sectors and the increasing confidence of investors.
Frequently Asked Questions
What are REITs in India?
Real Estate Investment Trusts (REITs) in India are investment vehicles that allow investors to buy and sell shares in a portfolio of income-generating real estate assets, such as office spaces and shopping malls.
How much office and retail real estate is currently in India's REITs?
Currently, India's REITs hold nearly 140 million sq ft of office and retail real estate, with the office space accounting for about 133 million sq ft and retail space around 5 million sq ft.
What sectors are driving the growth of office REITs in India?
The growth of office REITs in India is primarily driven by the increasing demand from Global Capability Centres (GCCs), technology firms, and BFSI (Banking, Financial Services, and Insurance) companies.
What is the potential for future REITs in India's office market?
There is a significant potential for future REITs in India's office market, with about 371 million sq ft of office assets that can potentially come under REITs.
How many REITs are currently listed in India?
Currently, there are five listed REITs in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust REIT.
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