NEW DELHI: According to a report by Colliers India, office REIT penetration in India could rise from approximately 19% to 25-30% by 2030.
The report predicts that industrial and warehousing InvIT penetration may increase from around 4-5% to 7-10% by 2030, driven by a pipeline of institutional-grade assets and market formalization.
As of March 2026, the operational portfolio of listed REITs and InvITs has surpassed 195 million sq ft, with an anticipated pipeline of about 37 million sq ft.
Office assets constitute around 84% of the operational portfolio of listed REITs and InvITs in India, and retail and industrial segments are also expanding their share, as outlined in Colliers’ report, “India REITs: Gaining scale & unlocking value.”
Operational office assets under REITs have more than doubled, growing from approximately 72 million sq ft in 2021 to about 164 million sq ft by the end of March 2026. During this period, office REIT penetration rose from roughly 11% to 19%.
Bengaluru holds the highest office REIT penetration among Tier-I markets, with around 30% of the city’s Grade-A office stock already listed under REITs. Hyderabad, Mumbai, and Pune follow with penetration levels of about 15-20%.
Of the total 164 million sq ft of office stock under REITs, Bengaluru represents 42%, with Hyderabad, Mumbai, and Delhi-NCR each accounting for 12-15%.
More than two-thirds of the office stock under existing REITs is situated in secondary business districts of major cities, as stated in the report.
“With an additional 370 million sq ft of Grade-A office stock poised for potential REIT listings, the growth prospects in this segment remain robust,” said Badal Yagnik, CEO & Managing Director of the company.
Hyderabad and Bengaluru constitute about 40% of the additional office stock eligible for REIT listing. Within these cities, 85-95% of this stock is located in secondary business districts.
In cities like Kolkata, Mumbai, and Pune, the majority of additional REIT-able office stock is in peripheral business districts, while in Delhi-NCR, nearly 60% is located in central business districts.
Since 2021, office REITs in India have achieved over 60 million sq ft of gross leasing, with first-quarter 2026 leasing at about five million sq ft, surpassing average quarterly absorption rates by approximately 95%.
By March 2026, occupancy across listed office REITs exceeded 90%, and average rents in REIT properties grew by 4-8% annually.
Technology firms make up roughly one-third of the tenant mix in office REITs, with BFSI occupiers holding 15-20% shares, while flexible space operators occupy about 5-10% of the portfolio.
Global capability centers accounted for 40-60% of the space uptake in REIT assets, according to the report.
The seven listed REITs and InvITs collectively had a market capitalization exceeding ₹2.1 lakh crore, compared to ₹60,000-65,000 crore in 2022 when only three REITs were listed.
Tier-II and Tier-III cities are also anticipated to see increased participation from REITs and InvITs, buoyed by infrastructure advancements, growing demand, and overall economic activity.
