India's REIT Market: Enormous Potential in Office Spaces
India's real estate investment trusts (REITs) have shown significant growth since their launch in 2019, with only 23% of the total REIT-worthy office stock currently listed, indicating vast potential for future expansion.
ReitsReal EstateOffice SpacesMarket CapitalisationIndiaReal Estate NewsJun 19, 2025
In terms of appreciation, India’s office REITs have demonstrated strong one-year performance (as of June 16, 2025), driven by robust leasing activity and steady rental escalations.
India was a late entrant into the REIT sector. However, since REITs launched in 2019, their market capitalisation has surpassed that of some major economies with matured REIT markets, according to the latest Anarock Research data.
The three listed Indian REITs — Embassy Office Parks, Mindspace Business Parks, and Brookfield India — have a combined portfolio of just 117.2 million sq ft, which is only 23 per cent of the overall REIT-able Indian office space market, said Anuj Puri, Chairman of the Anarock Group.
This indicates significant headroom for future REIT listings and office market consolidation across the top 7 cities, he mentioned.
With about 313 million sq. ft., Bengaluru, Hyderabad, and Chennai currently host the maximum available REIT-worthy office stock. However, just 18 per cent of this stock is listed in REIT portfolios.
In north India, Delhi-NCR currently has a total of REIT-worthy stock of 82 million sq ft, of which just 30 per cent is listed.
Mumbai Metropolitan Region (MMR) and Pune have a combined REITable office stock of 118 million sq feet, of which only 27 per cent is REIT-listed.
Data trends indicate that in 2023, the total REIT-worthy office stock in the top 7 cities was nearly 383 million sq ft.
This has grown by 36 per cent since then to approximately 520 million sq. ft. currently, thanks largely to generous new office supply infusions since 2023 and also the upgradation of old Grade A office stock to meet current demand and standards, according to Puri.
Frequently Asked Questions
What are Real Estate Investment Trusts (REITs)?
Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate. They allow investors to invest in a diversified portfolio of properties without directly owning them.
When did REITs launch in India?
REITs launched in India in 2019, marking the country's entry into this sector of the real estate market.
Which cities have the most REIT-worthy office stock in India?
Bengaluru, Hyderabad, and Chennai currently host the maximum available REIT-worthy office stock, totaling about 313 million sq. ft.
What is the current market capitalisation of Indian REITs?
The market capitalisation of Indian REITs has surpassed that of some major economies with matured REIT markets, indicating strong growth potential.
What is the combined portfolio of the three listed Indian REITs?
The three listed Indian REITs — Embassy Office Parks, Mindspace Business Parks, and Brookfield India — have a combined portfolio of just 117.2 million sq ft, which is 23 per cent of the overall REIT-able Indian office space market.
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