Office REITs in India Eye Portfolio Growth and Higher Occupancy
India's office real estate investment trusts (REITs) are set to expand their portfolios through acquisitions and development, aiming for higher occupancy and leasing. This growth is driven by strong demand from global capability centres (GCCs) and domestic occupiers.
ReitsOffice Real EstateOccupancyLeasingInvestmentReal Estate NewsNov 13, 2025
The four publicly listed office REITs in the country—Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust (BIRET), and Knowledge Realty Trust (KRT)—have seen their net operating income, occupancy levels, and distributions grow in the first half of 2025-26. This growth is expected to continue in H2 FY26, driven by demand and leasing from global capability centres (GCCs) and domestic occupiers.
Mindspace REIT has expanded its completed portfolio by over 4.2 million sq ft in the last nine months through organic and inorganic growth strategies. Going forward, it plans to focus more on acquisitions to stimulate growth, looking at multiple third-party assets and right-of-first-offer (Rofo) assets from sponsors.
“Our portfolio's committed occupancy has increased to 94.6% driven by good leasing momentum. So, the drop in leasing by IT services firms has been filled up by MNCs, GCCs, and Indian companies,” said Ramesh Nair, managing director and CEO of Mindspace REIT.
REITs pool income-generating real estate assets, such as office parks and shopping malls, to help investors earn a share of the income produced without purchasing the properties. SEBI regulations require at least 80% of a REIT’s assets to be completed and income-producing.
Brookfield REIT announced in November its plans to acquire a 100% interest in Ecoworld, a 7.7 million sq ft Grade A office park in Bengaluru, for ₹13,125 crore. The property is currently part of Brookfield Properties' portfolio. After the acquisition, Brookfield REIT or BIRET's operating area will increase by 31%, while the share of GCCs in tenancy will rise to 45%.
With increased leasing, committed occupancy levels for all office REITs have crossed 90%, and some expect them to reach the mid-90s mark by the end of FY26. For instance, BIRET's committed occupancy rose to 90% at the end of H1FY26 from 85% in H1FY25. Committed occupancy refers not only to space that is physically occupied but also to space that has signed leases.
Bengaluru developer Sattva Group and Blackstone-backed Knowledge Realty Trust (KRT) declared a distribution of ₹690 crore, or ₹1.55 per unit, during the quarter ended September, in its first distribution payout since listing in August. KRT clocked 1.8 million sq ft of gross leasing in H1FY26, and portfolio occupancy rose to 92%.
“Leasing has happened at an 8% premium to market, and rental growth has happened in Hyderabad, Bengaluru, and Mumbai. In a significant change, we are seeing annual rental escalation in cities such as Hyderabad and Mumbai, compared to the three-year escalation before,” said Quaiser Parvez, chief operating officer of KRT.
Of the 60 million sq ft of gross leasing between January and September 2025, GCCs accounted for nearly 35-40%, as per property advisory CBRE India. Office leasing is expected to surpass 80 million sq ft this year, said Ram Chandnani, MD, leasing services at CBRE India.
Embassy REIT, India's first listed real estate investment trust, clocked 3.5 million sq ft of gross leasing in the first six months of FY26, the highest among REITs. The REIT, which has a 50.8 million sq ft portfolio, is launching 2 million sq ft of new projects in Chennai, taking the total to 7.2 million sq ft.
Frequently Asked Questions
What are REITs and how do they work?
REITs, or Real Estate Investment Trusts, are companies that own, operate, or finance income-generating real estate. They pool the assets of multiple investors to purchase and manage real estate properties, providing investors with a share of the income produced without the need to own the properties directly.
What is committed occupancy in the context of REITs?
Committed occupancy refers to the total space in a property that is either physically occupied or has signed leases. It includes both occupied space and space that is leased but not yet occupied.
Which cities are seeing significant rental growth in India?
Cities such as Hyderabad, Bengaluru, and Mumbai are experiencing significant rental growth, with annual rental escalations becoming more common, as opposed to the previous three-year escalation periods.
What role do global capability centres (GCCs) play in the Indian office market?
GCCs, or Global Capability Centres, are playing a crucial role in the Indian office market. They account for a significant portion of office leasing, contributing to the growth and high occupancy levels of REITs.
How are REITs distributing income to shareholders?
REITs distribute income to shareholders in the form of dividends. For example, Knowledge Realty Trust (KRT) declared a distribution of ₹690 crore, or ₹1.55 per unit, during the quarter ended September, in its first distribution payout since listing in August.
Related News Articles
Vonovia Reports Significant Loss in H1 2024 Amidst German Real Estate Downturn
Germany's largest real estate group, Vonovia, announced a loss of EUR 529 million for the first half of 2024, reflecting the ongoing challenges in the German property market.
Goel Ganga Development: A Pillar of Strength in the Real Estate Industry
Goel Ganga Developments is a renowned name in the real estate industry, known for its high standards and prompt delivery. The company has been a major player in Pune's real estate market for over four decades, creating iconic buildings and earning the tru
Nirvaana Greens: Premium Residential Plots in Haridwar - Your Gateway to Serene Living
Discover the perfect blend of modern luxury and tranquil living in Haridwar with Nirvaana Greens. These RERA-approved residential plots offer a serene retreat in one of India's most revered cities. Nestled amidst lush landscapes, Nirvaana Greens is set to
Maharashtra Set to Revise Ready Reckoner Rates: Could Real Estate Prices Go Up?
The Maharashtra government is set to revise the Ready Reckoner (RR) rates, which could potentially impact real estate prices. This revision, expected to take effect from April 1, comes after a hiatus of over three years.
DLF Invests Rs 6000 Crore to Develop 75 Lakh Sq Ft of Office and Retail Space in Gurugram
DLF, India's leading real estate firm, is set to invest Rs 6000 crore to construct 75 lakh square feet of office and retail space in Gurugram. This move underscores the company's commitment to enhancing its presence in the Delhi-NCR region and driving urb
The Journey of Aryan Realty Infratech Pvt. Ltd. - From Trusted Consultant to Visionary Developer
After a decade of success in real estate consultancy, Aryan Realty Infratech Pvt. Ltd. has expanded its horizons to become a leading developer in the premium residential market. Discover how this transformation has been achieved and the future plans of this dynamic company.