India's REIT Market Poised for Explosive Growth: 77% Office Space Untapped
India's real estate investment trust (REIT) market has vast untapped potential, with only 23% of the country’s REIT-eligible office stock currently listed. The market is expected to grow significantly, driven by steady leasing activity and rising rents.
ReitReal EstateOffice SpaceInvestmentMarket GrowthReal Estate NewsJun 21, 2025
That leaves a massive 77 per cent of untapped potential, even as India’s listed REITs are already showing strong performance due to steady leasing activity and rising rents.
India may have entered the REIT space late with its first listing in 2019, but it is catching up quickly. According to Anarock Research, the market capitalisation of India’s REITs has already overtaken some mature global REIT markets. “The combined portfolio of the three listed Indian REITs — Embassy Office Parks, Mindspace Business Parks and Brookfield India — stands at just 117.2 million sq ft. That’s only 23 per cent of the total REITable office market in the country,” said Anarock Group Chairman Anuj Puri.
Cities such as Bengaluru, Hyderabad and Chennai currently hold the largest share of REIT-eligible office space at around 313 million sq ft. However, only 18 per cent of it is listed. In Delhi-NCR, about 30 per cent of the 82 million sq ft eligible stock is part of REIT portfolios. Mumbai and Pune together have around 118 million sq ft of REIT-suitable stock, but just 27 per cent of it has been brought into listed REITs so far.
In 2023, the total REIT-eligible office space across the top seven cities was around 383 million sq ft. That number has now grown by 36 per cent to reach 520 million sq ft. This increase is mainly due to a fresh supply of new offices and the upgrade of older Grade A properties to meet current market standards.
The key takeaway is that India's REIT market is only getting started, with a long runway ahead for growth and investment. This presents a significant opportunity for investors and developers to tap into the vast untapped potential and capitalize on the growing demand for high-quality office space in India’s major cities.
Frequently Asked Questions
What is the current percentage of REIT-eligible office space listed in India?
Currently, only 23% of the REIT-eligible office space in India is listed, which amounts to about 117.2 million sq ft out of the total 520 million sq ft across the top seven cities.
Which cities have the largest share of REIT-eligible office space?
Bengaluru, Hyderabad, and Chennai collectively hold the largest share of REIT-eligible office space at around 313 million sq ft.
How has the total REIT-eligible office space grown in recent years?
The total REIT-eligible office space across the top seven cities has grown by 36% from 383 million sq ft in 2023 to 520 million sq ft in the latest reports.
What factors are contributing to the growth of REIT-eligible office space?
The growth is mainly due to the fresh supply of new offices and the upgrade of older Grade A properties to meet current market standards.
What is the potential for further growth in India's REIT market?
The potential for further growth is significant, with 77% of the REIT-eligible office space still untapped. This presents a long runway for growth and investment in the Indian REIT market.
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