India's REIT Market Holds Massive Growth Potential

 

India’s real estate investment trust (REIT) market continues to show strong growth potential, with only 23 per cent of the total REIT-worthy office stock currently listed across the top seven cities, according to a report released by Anarock Research. The listed portfolio amounts to just 117.2 million sq. ft. out of the total 520 million sq. ft. of REIT-eligible Grade A office space, indicating vast room for expansion and market consolidation.

 

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.

 

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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 per cent of this has been listed. In Delhi-NCR, 30 per cent 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 per cent is listed.

 

The REIT-worthy stock has increased by 36 per cent 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.