India's REIT Market Poised for Significant Expansion
India's real estate investment trust (REIT) market shows strong growth potential, with only 23% of the total REIT-worthy office stock currently listed. Discover the untapped opportunities and regional trends in this rapidly evolving sector.
ReitReal EstateOffice SpaceMarket GrowthAnarock ResearchReal Estate NewsJun 19, 2025
India entered the REIT space relatively late, with the first listings emerging in 2019. However, in just a few years, the market capitalization of Indian REITs has surpassed that of some established global economies. As of June 16, 2025, the country’s REITs have demonstrated impressive one-year performance, driven by strong leasing activity and steady rental escalations.
The three currently listed REITs—Embassy Office Parks, Mindspace Business Parks, and Brookfield India—reflect the nascent stage of India’s REIT market. “This low percentage of listed stock reveals significant headroom for future REIT listings and consolidation in the office market,” said Anuj Puri, Chairman, Anarock Group.
South Indian cities, including Bengaluru, Hyderabad, and Chennai, collectively hold the largest share of REIT-worthy office space, at approximately 313 million sq. ft. However, only 18% of this has been listed. In Delhi-NCR, 30% of the region's 82 million sq. ft. of stock is currently listed, while the Mumbai Metropolitan Region (MMR) and Pune collectively have 118 million sq. ft., of which only 27% is listed.
The REIT-worthy stock has increased by 36% from 383 million sq. ft. in 2023 to 520 million sq. ft. today, largely due to new office developments and the upgrading of older Grade A office spaces to meet evolving demand. This growth is expected to continue as more investors recognize the potential of the Indian REIT market and the benefits of investing in high-quality office spaces.
Frequently Asked Questions
What is a REIT?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs allow individual investors to invest in large-scale, income-producing real estate without having to buy, manage, or finance properties directly.
What percentage of REIT-worthy office stock is currently listed in India?
Only 23% of the total 520 million sq. ft. of REIT-worthy office stock is currently listed in India, indicating significant potential for growth and market consolidation.
Which cities have the highest REIT-worthy office space?
Bengaluru, Hyderabad, and Chennai collectively hold the largest share of REIT-worthy office space, at approximately 313 million sq. ft.
How has the REIT-worthy office space grown in recent years?
The REIT-worthy office space has grown by 36% from 383 million sq. ft. in 2023 to 520 million sq. ft. today, primarily due to new office developments and the upgrading of older Grade A office spaces.
What are the key factors driving the growth of India's REIT market?
The key factors driving the growth of India's REIT market include strong leasing activity, steady rental escalations, and the increasing demand for high-quality office spaces. Additionally, the low percentage of listed stock provides significant headroom for future REIT listings and market consolidation.
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