Units of Indian real estate investment trusts are poised to extend gains on the back of falling interest rates and a buoyant commercial property market, analysts tracking the sector said.
Nexus Select Trust, Mindspace Business Parks REIT, Embassy Office Parks REIT and Brookfield India Real Estate Trust have returned as much as 27% over the last year, compared with a 9% drop in a NSE Nifty gauge of property developers.
That outperformance has been driven by easy monetary conditions, including aggressive rate cuts by the Indian central bank — a boon for REITs which make money mainly from managing income-generating real estate like offices and malls. Lower borrowing costs make it cheaper for these firms to acquire properties and to refinance existing debt.
“We have not seen such a performance from REITs in the last 4-5 years,” said Mohit Agarwal, who tracks real estate at IIFL Capital, adding there is “some more room for outperformance.”
The real estate trusts are also benefiting from a boom in the nation’s commercial and retail spaces. Gross office leasing in India’s top seven cities during April-June jumped 11% on year, according to a report by Colliers, even as sales of residential properties are slowing.
Office space demand looks well placed to reach 65-70 million square feet at least by the end of the year from 33.7 million square feet right now, said Arpit Mehrotra, India managing director of office services firm, Colliers.
India is also one of the only markets in the Asia Pacific region where market sentiment is positive for office, retail, industry and logistics, according to a June report by property consultant CBRE. India ranks alongside Singapore and Japan as the top office markets in the region.
“As APAC peers see softening demand, India’s diversified occupier base, tech-driven demand, and long-term fundamentals are keeping leasing markets vibrant,” said Anshuman Magazine, chairman and CEO at CBRE for India, South East Asia, Middle East and Africa, in the report.
The four listed REITs have distributed about 228.18 billion rupees ($2.7 billion) to their investors since listing. More than 262,000 people have invested in REIT as of June 2025 in India, according to the Indian REITs Association website.
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