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India's REIT market is entering a strong growth phase, with five listed REITs now managing nearly 140 million sq ft of office and retail real estate, according to Colliers India. While the four office-focused REITs cover 133 million sq ft, another 371 million sq ft of Grade A office space remains REIT-worthy, alongside 5 million sq ft of retail assets. Demand from Global Capability Centres, technology firms, and BFSI occupiers is driving momentum. Industry leaders from Mindspace REIT and Knowledge Realty Trust said REITs have matured into mainstream investment products, balancing stability and growth. With half of Grade A stock untapped, the sector offers vast expansion opportunities.
India's REIT market has been witnessing steady growth, with Colliers India observing that five listed REITs now control close to 140 million sq ft of office and retail real estate. The consultancy remarked that the market has moved from being in its nascent stage to a clear phase of early growth. Advertisement
According to Colliers, nearly 500 million sq ft of office space across the country is REIT-worthy. Presently, the four listed office REITs collectively cover around 133 million sq ft of Grade A office assets, while approximately 371 million sq ft of office stock has the potential to be brought under future REITs. Retail real estate, largely comprising shopping malls, currently adds another 5 million sq ft under the listed portfolio.
Badal Yagnik, Chief Executive Officer of Colliers India, stated that India's office REITs were at an early growth stage, with demand being driven by Global Capability Centres, technology firms, and BFSI occupiers. He noted that this increasing uptake was expected to accelerate the pace of expansion for office REITs.
Ramesh Nair, Managing Director and Chief Executive Officer of Mindspace REIT, reaffirmed that India's REIT market held strong potential. He observed that with nearly half of the country's Grade A office space yet to be listed, opportunities remained immense, and explained that his company was strengthening its portfolio in key markets to capture this growth.
Similarly, Shirish Godbole, Chief Executive Officer of Knowledge Realty Trust REIT, remarked that REITs in India had matured from being a novel concept to becoming a mainstream and trusted investment product. He pointed out that growing involvement from both institutional and retail investors demonstrated confidence in the fundamentals of India's commercial real estate sector. Godbole added that REITs offered a balance of stability and growth, making them an attractive investment vehicle.
Currently, five REITs are listed in India-Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and the newly introduced Knowledge Realty Trust REIT. Of these, Nexus holds a dominant retail real estate portfolio, while the other four are primarily backed by rent-generating office assets.
With nearly half of the Grade A office stock still available for potential listing, the sector offers immense room for expansion. Industry leaders believe that rising demand, growing institutional participation, and a diversified portfolio mix will drive sustained momentum, positioning REITs as a central force in India's commercial real estate landscape.
Source - PTI
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