India’s REIT Market Holds Growth Potential with 23% Eligible Office Stock Listed

India entered the Real Estate Investment Trust (REIT) market relatively late in 2019, but its growth has been impressive. According to latest ANAROCK Research, only 23% of the total REIT-worthy office stock—approximately 520 million sq. ft.—across the top seven cities is currently listed, highlighting immense future potential.

Anuj Puri, Chairman of ANAROCK Group, states, “The three listed REITs in India—Embassy Office Parks, Mindspace Business Parks, and Brookfield India—cover just 117.2 million sq. ft., representing only a fraction of the available REIT-compliant office stock. This reveals a huge opportunity for further REIT listings and consolidation.”

Southern cities like Bengaluru, Hyderabad, and Chennai collectively hold around 313 million sq. ft. of REIT-eligible office space, but only 18% is listed. Bengaluru alone has 162 million sq. ft., with just 24% under REITs. Hyderabad lists only 16% of its 102 million sq. ft., and Chennai has just 4% of its 49 million sq. ft. in REIT portfolios.

In North India, Delhi-NCR has 82 million sq. ft. of REIT-worthy stock, with 30% listed. In Western markets, Mumbai Metropolitan Region (MMR) and Pune have a combined REIT-compliant stock of 118 million sq. ft., with 27% listed—MMR at 29% and Pune at 24%.

Interestingly, Kolkata leads in listing ratio, with 43% of its 7 million sq. ft. REIT-eligible stock already included in REIT portfolios.

India’s REIT market is poised for significant expansion as more institutional-grade office spaces enter the fold, making it a key segment to watch in the commercial real estate landscape.

"Data trends indicate that in 2023, the total REIT-worthy office stock in the top 7 cities was approx. 383 Mn sq. ft.," says Puri. "This has grown by 36% since then to approx. 520 Mn sq. ft. currently, thanks largely to generous new office supply infusions since 2023 and also upgradation of old Grade A office stock to meet current demand and standards."

ANAROCK data shows that approx. 106.4 Mn sq. ft. of Grade A office space has been added across the top 7 cities from 2023 till Q1 2025. Meanwhile, out of the total available Grade A office stock across the top 7 cities (approx. 850 mn sq. ft.), at least 400 Mn sq. ft. (or 47%) is older than 10 years and can be upgraded to REIT standards. This will not only increase REIT-worthy stock across cities but also help increase office rental premiums by 10-30%.

In terms of appreciation, as of 16th June 2025, India’s office REITs have shown strong 1-year performance, driven by robust leasing activity and steady rental escalations. For instance, Mindspace Business Parks REIT led the pack with a 23.34% annual return, followed by Brookfield India REIT at 15.19%, and Embassy Office Parks REIT at 9.17%.