India REIT Market Poised for Early Growth with 140 Mn Sq Ft Listed Assets: Colliers

India’s Real Estate Investment Trust (REIT) market is moving from a nascent to early growth stage, with nearly 140 million sq ft of office and retail assets already listed, according to Colliers’ latest report “REITs Unlocked: Accelerating India’s Real Estate Maturity.” Of this, about 133 million sq ft comes from four listed office REITs, while nearly 371 million sq ft—around 46% of Grade A office stock—can potentially be brought under future REITs.

Bengaluru leads with 24% of additional REIT-worthy stock, followed by Hyderabad at 19%. Notably, 60% of the additional 371 million sq ft is concentrated in Secondary Business Districts (SBDs) across India’s top seven cities.

Currently, office REIT penetration in India stands at 16%, with occupancy levels above 86%, reflecting strong demand from Global Capability Centers (GCCs), technology, and BFSI firms. Colliers projects that 25–30% of India’s overall office stock could come under REITs by 2030.

Globally, mature REIT markets in Japan and Singapore already span diverse assets such as retail, industrial, data centers, and healthcare. India, while smaller in scale, is expected to expand beyond offices into retail, warehousing, hospitality, and rental housing segments like co-living and student housing.

Indian REITs are also strengthening ESG practices, with 86% of operational office portfolios already green-certified and plans to increase renewable energy usage by up to 35%. This aligns Indian REITs with global sustainability benchmarks and enhances their appeal to investors.