THE NEXT CHAPTER IN INDIA’S REIT JOURNEY

India’s Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are reshaping the country’s commercial real estate landscape. What began as a niche institutional investment vehicle has evolved into a sizeable asset class that is bringing transparency, liquidity and wider investor participation to the sector. According to Colliers’ latest report, India REITs: Gaining Scale & Unlocking Value, the combined operational portfolio of listed REITs and InvITs has crossed 195 million sq. ft as of March 2026, with an additional pipeline of nearly 37 million sq. ft expected to enter the market in the coming years. Today, India’s listed ecosystem comprises five office REITs, one retail REIT and one industrial and warehousing-focused InvIT, reflecting the growing maturity and diversification of the market.

Office Assets Continue To Lead

Office properties remain the backbone of India’s REIT market. Of the 195 million sq. ft operational portfolio, nearly 164 million sq. ft belongs to office assets, accounting for approximately 84% of the total stock under listed trusts. The office REIT segment has more than doubled in size over the last five years. Operational office assets increased from around 72 million sq. ft in 2021 to nearly 164 million sq. ft by March 2026. This expansion has significantly improved REIT penetration levels across India’s commercial office market. REIT-owned assets now account for nearly 19% of the country’s Grade A office stock, up from just 11% five years ago. The rising share indicates growing confidence among developers, institutional investors and occupiers in the REIT model.

Bengaluru Leads The REIT Landscape

Among India’s major office markets, Bengaluru remains the clear leader. The city accounts for about 42% of the office stock held under listed REITs, making it the largest REIT market in the country. Hyderabad, Mumbai and Delhi NCR each contribute between 12% and 15% of the operational office portfolio. Bengaluru also records the highest REIT penetration among Tier I office markets, with nearly 30% of its Grade A office stock already housed within listed REITs. Hyderabad, Mumbai and Pune follow with penetration levels ranging between 15% and 20%. A notable trend is the dominance of Secondary Business Districts (SBDs), which account for more than two-thirds of all office assets under existing REIT portfolios. These locations continue to attract occupiers due to their infrastructure, connectivity and availability of large format office campuses.

Emerging Cities Gain Importance
While office REITs remain concentrated in metropolitan markets, diversification is becoming increasingly visible in the retail and industrial sectors. Tier II and Tier III cities now account for approximately 35% of the industrial and warehousing InvIT portfolio and 51% of the retail REIT portfolio. The shift mirrors broader consumption and logistics trends as companies expand beyond traditional metropolitan centres.

The Next REIT Opportunity
India’s REIT story still has substantial room for growth. Colliers estimates that an additional 370 million sq. ft of Grade A office stock across Tier I cities has the potential to be included in future REIT portfolios. Hyderabad and Bengaluru together account for nearly 40% of this future REITable inventory. Most of this stock is concentrated within their Secondary Business Districts, reinforcing the importance of these micro-markets in the next phase of commercial real estate growth. In Delhi NCR, nearly 60% of the future REITable stock is concentrated in Central Business District locations, particularly Cybercity in Gurugram. Meanwhile, cities such as Mumbai, Pune and Kolkata are expected to see future REIT additions largely emerge from Peripheral Business Districts. As India’s commercial real estate market matures, REITs and InvITs are increasingly becoming the bridge between institutional-grade assets and retail investors, unlocking value while deepening the formalisation of the sector.


“With another leading developer recently monetizing its portfolio, the number of office REITs has expanded to five and overall operational stock within these REITs has increased from around 72 million sq. ft in 2021 to over 160 million sq. ft as on date. Consequently, almost one-fifth of India’s Grade A office stock across the top seven markets is currently under REITs, signalling a steady shift toward institutionalization and growing investor confidence in income-generating assets. Notably, with an additional 370 million sq. ft of existing Grade A office stock having the potential to be listed as future REITs, the runway for REIT growth in the office segment remains promising. Looking ahead, REIT penetration levels in the office market can potentially reach 30% by 2030, supported by influx of high quality green-certified assets, strong occupier demand and sustained investor appetite” Badal Yagnik, CEO & Managing Director, Colliers India