Despite significant strides since the launch of Real Estate Investment Trusts (REITs) in India in 2019, a vast portion of REIT-suitable office space across the top 7 Indian cities remains untapped. According to the latest ANAROCK Research data, only 23% of the total REIT-able office stock—or 117.2 million sq. ft. out of 520 million sq. ft.—is currently listed with India’s three publicly traded REITs: Embassy Office Parks, Mindspace Business Parks, and Brookfield India REIT.
🧾 Snapshot: India’s REITable Office Market (Top 7 Cities)
| Metric | 2023 | 2025 (TD) | Growth |
|---|---|---|---|
| Total REIT-able Office Stock | 383 Mn sq. ft. | 520 Mn sq. ft. | +36% |
| Listed REIT Stock | – | 117.2 Mn sq. ft. | 23% of total |
| Total Grade A Office Stock | – | 850 Mn sq. ft. | – |
| Upgradable Stock (10+ yrs old) | – | 400 Mn sq. ft. | 47% of total |
📍 Southern Cities Lead in Stock, But Lag in Listings
The southern markets—Bengaluru, Hyderabad, and Chennai—collectively host the largest chunk (approx. 313 Mn sq. ft.) of REIT-suitable office stock. However, only 18% of this is currently part of listed REIT portfolios.
🔽 City-Wise Breakdown: REIT-able vs. Listed Stock
| City | REIT-able Stock (Mn sq. ft.) | Listed Stock (Mn sq. ft.) | % Listed |
|---|---|---|---|
| Bengaluru | 162 | 39 | 24% |
| Hyderabad | 102 | 16.3 | 16% |
| Chennai | 49 | 2 | 4% |
| Delhi-NCR | 82 | 24.6 | 30% |
| MMR (Mumbai) | 80 | 23.4 | 29% |
| Pune | 38 | 9 | 24% |
| Kolkata | 7 | 3 | 43% |
✅ Kolkata leads in percentage terms, with 43% of its 7 Mn sq. ft. REITable stock already listed.
🧱 Why the Spike in REITable Stock?
The 36% surge in REITable stock from 2023 to 2025 has been driven by two key factors:
- New Supply Addition: About 106.4 Mn sq. ft. of Grade A office stock has been added across top 7 cities since 2023.
- Upgradation of Aging Assets: Nearly 400 Mn sq. ft. of existing stock (older than 10 years) is suitable for conversion to REIT standards.
🔍 Key Quote:
“The listed Indian REITs currently manage only a fraction of the total REITable market. This opens massive opportunities for new listings and consolidation,”
— Anuj Puri, Chairman, ANAROCK Group
📈 Investor Returns Show Robust REIT Performance
India’s REITs are not just expanding in footprint—they’re also delivering strong returns.
💹 1-Year Returns of Listed REITs (as of 16 June 2025):
| REIT | 1-Year Return |
|---|---|
| Mindspace Business Parks REIT | 23.34% |
| Brookfield India REIT | 15.19% |
| Embassy Office Parks REIT | 9.17% |
📊 Mindspace REIT has been the top performer, driven by strong leasing activity and rental escalations.
🔮 What Lies Ahead?
India’s REIT journey is still in its early phase, but the potential is vast:
- 47% of Grade A stock can be upgraded to REIT quality.
- Opportunity to increase rental yields by 10–30% through upgradation.
- Expansion into tier-2 cities and mixed-use assets may open new frontiers.
📦 Quick Facts Box: Indian REIT Market
- Launched: 2019
- Total Listed Stock: 117.2 Mn sq. ft.
- REITs in India: 3 (Embassy, Mindspace, Brookfield)
- Top City by Stock: Bengaluru (162 Mn sq. ft.)
- Top City by Listing %: Kolkata (43%)
- Total REITable Office Market: 520 Mn sq. ft.
- Total Grade A Office Stock: 850 Mn sq. ft.
📘 Conclusion
India’s REIT ecosystem is growing steadily but still under-leveraged. With only one-fourth of REIT-suitable stock currently listed, there is massive untapped potential waiting to be unlocked—especially in southern and western markets. As investors seek yield-driven, stable instruments, REITs are set to gain more traction in the years ahead.
Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors
