Mindspace REIT Aims for 50% NOI Growth with Major Expansions in Mumbai and Pune
Mindspace Business Parks Real Estate Investment Trust (REIT) plans to expand its portfolio and increase its net operating income (NOI) by nearly 50% over the next three to four years through a ₹4,200 crore expansion program.
Commercial Real EstateReit ExpansionNet Operating IncomeSustainabilitylinked BondsIndian Real EstateReal Estate PuneSep 13, 2025
Preeti Chheda, Chief Financial Officer of Mindspace REIT, said the company is working on multiple fronts as it completes five years since its listing. The existing portfolio consists of 30 million square feet of completed space, with another 3.5–4 million square feet already under construction. Alongside this pipeline, permissions are awaited for an additional 4 million square feet. Construction on new projects is scheduled to begin within the next 12 to 18 months.
The REIT continues to focus heavily on the technology sector and global capability centres, which account for the largest share of its tenants. Managing Director and Chief Executive Ramesh Nair explained that the organisation does not anticipate disruptions from ongoing shifts in trade policy or from the rapid adoption of artificial intelligence in global markets. He argued that India retains a strong cost advantage, pointing to internal analysis which suggests that outsourcing to India remains significantly cheaper even if tariffs on Indian services exports were to increase sharply. Independent reports cited by the management also indicate that AI will not reduce overall job creation in India in the near term.
Mr. Nair further highlighted that entry-level salaries in India’s technology sector remain around ₹3.5–4 lakh per annum, providing long-term competitiveness for clients choosing to locate operations in the country. He added that while some multinational corporations have shown interest in building their own campuses, such plans take years to execute and often expose companies to challenges in navigating local real estate markets. Leasing space through a REIT, by contrast, provides quicker access and greater flexibility to align with client requirements.
Over the past five years, the share of Indian corporates in Mindspace REIT’s total NOI has doubled to about 25 percent, underscoring the growing role of domestic enterprises in the commercial real estate sector. These tenants, officials said, are largely concentrated in Mumbai suburbs such as Airoli, while multinational companies continue to prefer locations in Pune, Hyderabad, and Chennai. The REIT believes this geographic mix helps balance demand across sectors and tenant categories.
Chheda also noted the need for regulatory adjustments to further support the growth of Indian REITs. She called for an increase in the investment limits for insurance and pension funds, along with provisions to allow conversions from company structures into trust structures. Such steps, she argued, would widen the investor base and deepen capital flows into the sector.
Mindspace REIT has already raised ₹550 crore through sustainability-linked bonds from the International Finance Corporation earlier this year, signalling interest from global investors in India’s managed office space. With domestic and international tenants both contributing to demand, the trust is positioning itself to consolidate its role as one of the country’s leading real estate investment vehicles.
Frequently Asked Questions
What is the current NOI of Mindspace REIT?
The current net operating income (NOI) of Mindspace REIT stands at around ₹2,000 crore.
How much new space does Mindspace REIT plan to add?
Mindspace REIT plans to add close to 8 million square feet of new space through a ₹4,200 crore expansion program.
What sectors does Mindspace REIT focus on?
Mindspace REIT focuses heavily on the technology sector and global capability centres, which account for the largest share of its tenants.
What is the current entry-level salary range in India’s technology sector?
The current entry-level salary range in India’s technology sector is around ₹3.5–4 lakh per annum.
What regulatory changes does Preeti Chheda suggest for Indian REITs?
Preeti Chheda suggests increasing the investment limits for insurance and pension funds and providing provisions to allow conversions from company structures into trust structures.
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