Office REIT penetration in India is expected to rise from 19% to 30% by 2030, according to Colliers India. Strong leasing activity, growing institutional ownership, increasing retail investor participation, and a pipeline of 370 million sq. ft. of REIT-ready office stock are driving the next phase of growth.
India’s commercial real estate market is witnessing a significant shift toward institutional ownership, with Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) emerging as major drivers of market formalisation. According to Colliers India’s latest report, India REITs: Gaining Scale & Unlocking Value, office REIT penetration is projected to increase from the current 19% to 25%-30% by 2030. The growth is expected to be supported by strong occupier demand, expanding institutional-grade office supply, rising investor participation, and continued confidence in income-generating commercial assets.
India’s listed REIT and InvIT ecosystem has expanded rapidly over the last five years. The market now includes five office-focused REITs, alongside retail and industrial-focused platforms. Collectively, these vehicles manage more than 195 million square feet of operational assets, with an additional pipeline of approximately 37 million square feet under development. Office properties continue to dominate the sector, accounting for nearly 84% of the operational portfolio.
Office REITs Continue to Gain Scale
The scale of office REITs has more than doubled in recent years. Operational office assets under REIT ownership have increased from around 72 million square feet in 2021 to nearly 164 million square feet as of March 2026. This growth has pushed office REIT penetration from approximately 11% to 19% during the same period.
Bengaluru remains the largest REIT market in the country, accounting for 42% of the total office stock held by REITs. Hyderabad, Mumbai, and Delhi NCR follow closely, each contributing between 12% and 15%. Notably, Secondary Business Districts (SBDs) account for more than two-thirds of the office space currently owned by REITs, reflecting occupier preference for high-quality business corridors outside traditional central districts.
Commenting on the trend, Badal Yagnik, CEO and Managing Director, Colliers India, said, “Almost one-fifth of India’s Grade A office stock across the top seven markets is currently under REITs, signalling a steady shift toward institutionalisation and growing investor confidence in income-generating assets.”
GCCs, Technology Firms, and Flex Operators Drive Demand
Leasing activity within REIT-owned office assets remains robust. Since 2021, office REITs have recorded more than 60 million square feet of gross leasing activity. During the first quarter of 2026 alone, leasing reached nearly 5 million square feet, significantly outperforming historical quarterly averages.
Technology companies continue to represent the largest tenant category, accounting for roughly one-third of occupied space. BFSI firms contribute another 15-20%, while flexible workspace operators currently occupy 5-10% of total REIT portfolios. Global Capability Centres (GCCs) have emerged as a major growth driver, accounting for 40% to 60% of recent office space absorption in REIT-managed properties.
Occupancy levels across listed office REITs have remained above 90%, while average rentals have increased by 4-8% annually, highlighting the resilience of premium Grade A office assets.
Investor Participation Reaches New Highs
The growth story extends beyond real estate fundamentals. Investor participation in REITs and InvITs has increased dramatically, supported by greater awareness and accessibility. According to Colliers India, the combined market capitalisation of India’s listed REITs and InvITs has grown from approximately ₹600-650 billion in 2022 to over ₹2,100 billion today.
Vimal Nadar, National Director and Head of Research at Colliers India, noted, “The number of unitholders has seen over 5X rise during the same period, reaffirming the growing democratisation of real estate in India.”
With approximately 370 million square feet of additional Grade A office stock potentially eligible for future REIT listings, the sector appears well-positioned for sustained expansion. As institutional ownership grows and occupier demand remains healthy, REITs are expected to play an increasingly central role in shaping the future of India’s office, coworking, and flexible workspace markets.
