REITs hold 13% of India's Grade-A office stock, record 15% capital growth in last 12 months

REITs hold 13% of India's Grade-A office stock, record 15% capital growth in last 12 months

India Office REITs (Real Estate Investment Trusts) recorded over 15 percent capital appreciation in last 12 months. According to data by Cushman & Wakefield, the three office REITs collectively garnered leasing volumes of more than 16 million square feet, which accounted for close to a fifth of the gross leasing volume (GLV) across the top eight cities in the country.

As of June 2025, the Indian REIT market comprised three office REITs and one retail REIT, collectively managing an operational portfolio of over 105 million square feet. Data showed that while the number of listed REITs remained constant over the past year, their combined portfolio grew by more than 12 percent, raising the institutional share to approximately 13 percent of India’s total Grade A office stock.

Apart from this, more than 23 million sq ft of new office space is under construction or is planned by the existing office REITs, and it is expected this new supply to be added to the total REIT portfolio in the coming years.

According to Cushman & Wakefield, during the 12-month period up to June 2025, all three-office REIT stocks delivered more than 15 percent capital appreciation. The key driver has been the underlying strength of India’s office real estate market, triggered by heightened demand from Global Capability Centres (GCCs), engineering and manufacturing, and BFSI firms.

There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs.

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Prinicipal Correspondent|moneycontrol

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GCCs drive leasing demand for India office REITs

Market observers said that India’s office asset REITs have attracted a considerable share of demand from global capability centres (GCCs), which is a key driver for India’s office markets.

On a pan-India level, GCCs have accounted for 28 percent–29 percent of gross leasing volume on average over the last four quarters up to Q1 2025. In contrast, office REIT property owners were able to achieve a much higher share, between 40 percent and 60 percent of total leasing demand from GCC firms, rendering institutionally owned assets the preferred choice for many multinational occupiers, the data showed.

Somy Thomas, Executive Managing Director, Valuations and Co- Head, Capital Markets, India, at Cushman & Wakefield commented said that India’s REIT market continues to carve a strong trajectory, with exceptional growth seen across the office sector.

“Multinational companies, especially GCCs have driven record leasing activity, which now accounts for a significant share of the nation's Grade-A office stock. There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs. All three office REITs in India achieved occupancy rates close to 90 percent at the end of Q1 2025,” he said.

India currently has three office REITs -- Embassy Office Parks REIT, Embassy Office Parks REIT, Mindspace Business Parks REIT – and one retail REIT which include Nexus Select Trust.

A fourth office REIT, which is Knowledge Realty Trust, in India is expected to make its listing debut by the end of the calendar year 2025. Knowledge Realty Trust is backed by Blackstone and Sattva Developers and have 48 msf of Pan-India Grade-A office space (37 msf operational and 11 msf under development).