Mumbai: Real estate investment trusts (REITs) currently hold only 23 per cent of the total REIT-worthy office stock—estimated at 520 million square feet—across India’s top seven cities, revealing significant potential for growth, according to a report released in June. In terms of performance, India’s office REITs have recorded strong one-year returns (as of June 16, 2025), driven by robust leasing activity and consistent rental escalations.

India entered the REIT sector relatively late. However, since the launch of REITs in 2019, their market capitalisation has outpaced that of several countries with established REIT frameworks, according to the latest data from Anarock Research.

The three listed REITs in India—Embassy Office Parks, Mindspace Business Parks, and Brookfield India—currently manage a combined portfolio of 117.2 million sq. ft., which represents just 23 per cent of the total REIT-able office space in the country, said Anuj Puri, Chairman of Anarock Group.

This gap highlights the significant headroom available for additional REIT listings and office market consolidation across the top seven Indian cities, Puri added.

Bengaluru, Hyderabad, and Chennai together account for approximately 313 million sq. ft. of REIT-worthy office stock. However, only 18 per cent of this stock is presently included in REIT portfolios.

In North India, the Delhi-NCR region has 82 million sq. ft. of potential REIT-grade office stock, with only 30 per cent currently listed.

The Mumbai Metropolitan Region (MMR) and Pune jointly account for 118 million sq. ft. of REIT-eligible stock, of which just 27 per cent is listed under current REIT portfolios.

According to data trends, the total REIT-worthy office stock across the top seven Indian cities stood at nearly 383 million sq. ft. in 2023. “This figure has grown by 36 per cent to approximately 520 million sq. ft. today, largely due to the infusion of new office supply since 2023 and the upgradation of older Grade A office buildings to meet evolving market standards,” Puri stated.