India's office REITs penetration to rise to 30 pc by 2030: Report
New Delhi, June 19
Real estate investment trusts and infrastructure investment trusts in India have expanded rapidly over nearly six years and could see office REIT and industrial & warehousing InvIT penetration touch 30 per cent and 10 per cent, respectively, by 2030, a report said on Friday.
The rapid surge in the REIT penetration levels in the office market is supported by influx of high quality green-certified assets, strong occupier demand and sustained investor appetite, the report from Colliers said.
The existing portfolio across listed REITs and InvITs surpassed 195 million sq ft with an upcoming pipeline of roughly 37 million sq ft as of March 2026.
While the office segment continues to dominate with around 84 per cent share in the operational portfolio of existing Indian REIT/InvIT, retail and industrial & warehousing segments are gaining momentum.
REITs and InvITs are accelerating the institutionalisation and democratisation of India's real estate sector, driven by rising investor participation, strong operational performance of underlying assets, asset acquisition and supportive policies, the report noted.
The market now comprises five office-focused REITs alongside a retail REIT and an industrial & warehousing focused InvIT, reflecting scalability of REIT/InvIT structures in India.
"Almost one-fifth of India's Grade A office stock across the top seven markets is currently under REITs, signaling a steady shift toward institutionalization and growing investor confidence in income-generating assets," said Badal Yagnik, CEO & Managing Director, Colliers India.
An additional 370 million sq ft of existing Grade A office stock holds potential to be listed as future REITs, making REIT growth in the office segment promising, he added.
Operational assets under office REITs in India have witnessed more than two-fold rise in the last five years, rising from around 72 million sq ft in 2021 to roughly 164 million sq ft at the end of March 2026.
Resultantly, REIT penetration indicated by the proportion of office stock under REITs as compared to the overall office stock increased from around 11 per cent to 19 per cent during the same period.
Bengaluru has the highest REIT penetration level amongst the Tier I office markets with about 30 per cent of the city's existing Grade A office stock already listed under REITs.
Hyderabad, Mumbai & Pune follow with a REIT penetration of about 15-20 per cent. Over two-thirds of the office stock under existing REITs is spread across Secondary Business Districts (SBDs) of major cities.
— IANS
Reader Comments
As someone working in a tech park in Bengaluru that's part of a REIT, I can see the difference—better maintenance, proper green certifications, and consistent rental growth. But the report mentions only Grade A office stock; what about the millions of sq ft of older buildings? They'll be left out of this institutionalisation, and that's a missed opportunity for smaller landlords and tenants alike. 🤔
Great news for the economy! The 195 million sq ft portfolio is a massive jump from 72 million sq ft in 2021—shows how much confidence global investors have in India's office market. But I worry about the concentration in SBDs (Secondary Business Districts). What about Tier 2 cities like Coimbatore or Indore? They have good quality office space but no REITs yet. Need more geographic diversification.
I've been following NSE's REIT index and the returns have been decent for a passive investment—around 12-15% annualised over 3 years including price appreciation. But the retail investor participation is still low because of lack of awareness. SEBI should allow smaller lot sizes, like ₹10,000 per unit instead of ₹1 lakh, so that more people can invest. Also, the InvIT for warehousing is interesting—e-commerce growth will boost that segment. 📈
Good report but let's be realistic—30% penetration by 2030 is ambitious. The current 19% is skewed by Bengaluru's 30% figure; other cities are far behind. Plus, the rental yields in Indian commercial real estate are still lower than in developed markets. Unless the government reduces stamp duty on REIT transfers and simplifies taxation for unitholders, retail investors will stay away. Also, the upcoming pipeline of 37 million sq ft is good but needs to be matched by demand. 🤷
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