India's REIT Market Poised to Reach ₹10.8 Trillion by 2029: Top 7 Cities Driving Growth
India’s Real Estate Investment Trust (REIT) market has witnessed remarkable growth over the past six years, with institutional participation soaring. The four major publicly listed REITs now manage over 174 million square feet of top-tier commercial properties in the country’s key urban centers.
REITs have become a significant player in the real estate landscape, offering investors a way to diversify their portfolios and capitalize on the burgeoning commercial and rental markets. The geographical spread of REIT assets across India reflects the country's economic and demographic shifts, with certain cities emerging as key hubs.
1. Bengaluru
Bengaluru stands out as the leading REIT hub, boasting 40.84 million square feet of institutional assets valued at ₹50,085 crore. The city’s REIT portfolio is primarily supported by the 38.4 million square feet office portfolio of Embassy REIT and the retail presence of Nexus Select Trust, which operates three premium Grade-A malls: Vega City Mall, Nexus Whitefield, and Nexus Shantiniketan, totaling 2.44 million square feet.
Bengaluru is India’s largest office market, with a total stock of 223 million square feet, of which REITs account for about 17%. Recently, Brookfield India Real Estate Trust (BIRET) committed to acquiring a large office campus in Bengaluru, spanning 7.7 million square feet over 48 acres on the Outer Ring Road for ₹13,125 crore.
2. Mumbai and Mumbai Metropolitan Region (MMR)
The MMR is the second-largest institutional real estate hub in India, with 31.02 million square feet of REIT assets valued at ₹20,034 crore. The city’s REIT market is diverse, with Mindspace REIT leading the pack with 52% of the share (16.2 million square feet), followed by Brookfield India REIT with 8.1 million square feet (26%), Embassy REIT with 4.6 million square feet (15%), and Nexus Select Trust with 2.12 million square feet of retail assets (7%).
Mumbai’s status as India’s financial and commercial hub attracts a wide range of institutional investors, each with specific real estate strategies. Occupancy rates are strong, with Mindspace REIT at 83.7% and Brookfield at 85%, driven by high demand from multinational and financial services sectors.
3. Delhi, National Capital Region (NCR)
Delhi and NCR together account for 25.50 million square feet of REIT assets valued at ₹38,596 crore. Brookfield India REIT is the dominant player in the region, managing 20.9 million square feet (82% of NCR REIT assets) through its portfolio of Candor TechSpace in Gurugram and Noida. Embassy REIT (2.7 million square feet, 11%) and Nexus Select Trust (1.90 million square feet retail, 7%) are also significant contributors.
Brookfield’s recent acquisition of 3.3 million square feet from Bharti Enterprises, including WorldMark Delhi, Airtel Center, and WorldMark Gurugram, further cements its leadership in the NCR. The region has 72 million square feet of REIT-approved office space, the second-largest after Bengaluru, indicating substantial investment potential.
4. Hyderabad
Hyderabad is the fourth-largest REIT hub, with 16.25 million square feet of institutional assets valued at ₹46,036 crore. Mindspace REIT is the primary player, operating 15.4 million square feet across two campuses in Madhapur and Pocharam, representing 94.8% of the total REIT assets in Hyderabad. Nexus Select Trust contributes 0.85 million square feet of retail space.
The city’s transformation into a major Global Capability Center (GCC) with over 350 GCCs has driven high occupancy rates for Mindspace, which stands at 92.1%. This, coupled with robust rental growth, underscores Hyderabad’s appeal to institutional investors.
5. Pune
Pune hosts a total of 10.76 million square feet of REIT assets valued at ₹15,183 crore, with a balanced participation of REITs. Mindspace REIT leads with 6.1 million square feet (56.7% of Pune’s total), followed by Embassy REIT with 3.6 million square feet (33.5%), and Nexus Select Trust with 1.06 million square feet of retail space (9.8%).
Pune’s REIT portfolio boasts the highest occupancy rate among metropolitan REITs, at 98% committed occupancy. The city’s appeal to secondary office consultants, particularly those serving IT services, engineering, and manufacturing sectors, has driven its growth as a cost-effective alternative to established metros.
6. Chennai
Chennai is an emerging institutional real estate market, currently holding 3.65 million square feet of REIT assets valued at ₹6,476 crore. Embassy REIT leads with 1.5 million square feet (42% of the total assets) after acquiring a modern office campus. The REIT has achieved a 96% occupancy rate, driven by strong pre-leasing momentum from Global Capability Centers.
Mindspace REIT contributes 1.3 million square feet (36%), and Nexus Select Trust adds 0.85 million square feet of retail assets (23%). Chennai’s total REIT-ready office space of 52 million square feet signals a bright future for development in the region.
7. Kolkata
Kolkata rounds out the top 7 cities with 3.65 million square feet of REIT assets valued at ₹6,476 crore. The city’s REIT market is dominated by Brookfield India REIT with 2.1 million square feet (58%), followed by Mindspace REIT with 1.3 million square feet (36%), and Nexus Select Trust with 0.85 million square feet of retail assets (23%).
Kolkata’s REIT market is poised for growth, with a total REIT-ready office space of 52 million square feet, signaling significant investment opportunities in the coming years.
The growth of the REIT market in these cities is a testament to India’s evolving real estate landscape, driven by economic expansion, urbanization, and the increasing demand for quality commercial and rental assets. As institutional investors continue to pour capital into these markets, the future of India’s REIT sector looks promising.
