REITs Poised to Capture 30% of India's Grade A Office Space by 2030
India’s listed office Real Estate Investment Trusts (REITs) are projected to expand their coverage from the current 16% to 30% of Grade A office space by 2030, driven by rising demand from Global Capability Centres (GCCs) and technology firms.
ReitsGrade A Office SpaceGlobal Capability CentresReal Estate InvestmentGreen CertificationReal EstateAug 27, 2025
According to Colliers’ report ‘REITs Unlocked: Accelerating India’s Real Estate Maturity,’ the four REITs currently manage nearly 133 million sq. ft. of Grade A office space. Additionally, another 371 million sq. ft., or about 46% of the existing stock, holds potential for future REIT listings. This expansion is fuelled by new listings, a broader occupier base, and increasing institutionalisation in the sector.
Bengaluru accounts for 24% of the additional Reit-able stock, followed by Hyderabad at 19%. Existing REITs also have about 34 million sq. ft. of under-construction supply, expected to be operational in the next 12-24 months. Overall, 223 million sq. ft., or 60% of Reit-able stock, is concentrated in secondary business districts across the top seven cities.
Strong demand is reflected in occupancy rates above 86%, largely driven by Global Capability Centre (GCC), technology, and Banking, Financial Services, and Insurance (BFSI) firms. Notably, 86% of operational office portfolios under REITs are already green-certified, with a target of achieving 100% certification and increasing renewable energy usage by 30-35% in the coming years.
The growth of REITs in India is a testament to the country’s maturing real estate market and the increasing confidence of institutional investors. The sector’s expansion is expected to bring more transparency, liquidity, and efficiency to the market, benefiting both investors and occupiers.
However, challenges such as regulatory hurdles and the need for consistent policy support remain. Addressing these issues will be crucial to sustaining the growth momentum and ensuring that REITs continue to play a significant role in the development of India’s office market.
In summary, the future looks bright for REITs in India, with the potential to capture a substantial share of the Grade A office space market by 2030. This growth is underpinned by strong demand, a robust pipeline of new projects, and a commitment to sustainability and green certifications.
Frequently Asked Questions
What is the current coverage of REITs in India's Grade A office space?
Currently, REITs cover about 16% of Grade A office space in India.
What is the projected coverage of REITs by 2030?
REITs are projected to cover 30% of Grade A office space by 2030.
Which cities are expected to contribute the most additional Reit-able stock?
Bengaluru and Hyderabad are expected to contribute the most additional Reit-able stock, with Bengaluru accounting for 24% and Hyderabad for 19%.
What is the current green certification rate for operational office portfolios under REITs?
86% of operational office portfolios under REITs are already green-certified, with a target of achieving 100% certification.
What are the key drivers of demand for Grade A office space?
The key drivers of demand for Grade A office space include Global Capability Centres (GCCs), technology firms, and Banking, Financial Services, and Insurance (BFSI) firms.
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