India’s REIT Market to Transform Office Spaces by 2030

India’s REIT Market to Transform Office Spaces by 2030

India’s Real Estate Investment Trust (REIT) journey is entering a powerful new chapter. What began as a nascent market has now stepped into an early growth stage, with nearly 140 million sq ft of assets already listed. By 2030, REIT penetration in the office sector is expected to almost double, reaching 25–30%.

The Surge of Office REITs

At present, India has four listed office REITs covering about 133 million sq ft of Grade A office space. They boast high occupancy levels above 86% and steady rental flows, driven by sectors like technology, BFSI, and Global Capability Centers. Additionally, nearly 34 million sq ft of under-construction office supply is set to join the portfolio within the next 1–2 years.

Interestingly, Bengaluru leads the pack with 24% of potential REITable stock, followed by Hyderabad at 19%. Secondary Business Districts (SBDs) dominate this supply, holding nearly 60% of the upcoming REITable assets.

India Versus Global Markets

While India’s REIT market is scaling fast, it remains smaller compared to global leaders like Singapore and Japan. Globally, REITs have expanded far beyond offices, covering retail malls, industrial warehouses, residential apartments, hospitals, and even data centers. In India, regulatory support from SEBI is paving the way for broader adoption, including Small and Medium REITs (SM-REITs).

Diversification and ESG at the Core

Indian REITs are no longer restricted to offices. Expansions into retail, warehousing, hospitality, and futuristic bets like co-living and student housing are already underway. What sets the market apart is its ESG commitment: nearly 86% of operational office portfolios are green-certified. Over the next few years, REITs aim for full certification and a 30–35% increase in renewable energy usage, reinforcing their global investment appeal.

Looking Ahead

The momentum is undeniable. With growing institutional participation, rising investor confidence, and sustainability initiatives, India’s REITs are poised to transform the country’s commercial real estate landscape. By 2030, the shift will not just be about square footage—it will be about resilience, diversification, and long-term value creation.