India’s REIT market holds immense untapped potential, with only 23% of its 520 million sq. ft. of REIT-worthy office space currently listed. As leasing activity surges and older office stock is upgraded, cities like Bengaluru, Hyderabad, and Delhi-NCR are becoming key hubs for future REIT expansion, Anarock Research reports.
REITs Cover Just a Fraction of India’s Eligible Office Stock
India’s real estate investment trust (REIT) sector may be growing, but it has just scratched the surface. According to a new report from Anarock Research, just 23% of India’s total REIT-worthy office stock—estimated at 520 million square feet across the top seven cities—is currently listed.
This points to immense headroom for growth in the coming years. “The three listed Indian REITs—Embassy Office Parks, Mindspace Business Parks, and Brookfield India—collectively hold just 117.2 million sq. ft. of space,” said Anuj Puri, Chairman of Anarock Group.
Market Expands as Cities Upgrade and Add Office Space
The available pool of REIT-grade space has expanded significantly over the last year. In 2023, the top seven Indian cities had 383 million sq. ft. of REIT-worthy stock. That number has jumped by 36% to reach 520 million sq. ft. as of June 2025.
This growth is driven by two key factors: a surge in new office developments and upgrading ageing Grade A spaces to meet modern standards. Cities such as Bengaluru, Hyderabad, and Chennai lead the pack with a combined 313 million sq. ft. of REIT-eligible inventory—yet only 18% of this has been listed.
City-Wise Breakdown Highlights Growth Opportunities
In Delhi-NCR, 30% of the region’s 82 million sq. ft. of REIT-ready office stock is currently listed. Meanwhile, Mumbai Metropolitan Region (MMR) and Pune together have about 118 million sq. ft., with 27% already under REIT portfolios.
These figures highlight the uneven distribution of listings across regions and underscore where the next wave of REIT growth may unfold.
Strong Performance Signals Investor Confidence
Despite being a relatively young sector—REITs were first introduced in India in 2019—the segment has performed well. As of June 16, 2025, India’s office REITs have delivered strong one-year returns, fueled by steady leasing activity and consistent rental escalations.
“India was a late entrant to the REIT space, but since its debut, the market capitalisation of Indian REITs has outpaced several countries with more established REIT ecosystems,” said Puri.
Looking Ahead: A More Consolidated Future
As the Indian office market matures and developers look for asset-light models, more commercial assets are expected to enter REIT structures. The growing appetite for institutional-grade office space and investor demand for stable yields make REITs a strategic growth lever.
With over three-quarters of REIT-worthy space still untapped, India’s REIT sector is only getting started.
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