Top 7 Cities in India Offer 526 Million Sq Ft of REIT-Worthy Office Space, Valued at INR 4.5 Lakh Crore

Vast Potential for REIT Growth in India

India’s top seven cities collectively house 526.3 million square feet of rent-yielding office space, valued at ₹4.5 lakh crore. This inventory is eligible for inclusion in Real Estate Investment Trusts (REITs) and listing on stock exchanges, as per a recent report by real estate consultancy Vestian.

REIT Market in India Still Developing

Vestian’s report, titled “REITs: Reshaping India's Commercial Space,” highlights that India’s REIT market remains in its early stages compared to global standards. Currently, there are only four listed REITs in the country, managing a combined portfolio of 125 million square feet across retail and office segments.

Why REITs Are Gaining Popularity

REITs are steadily attracting both domestic and international investors due to the promise of attractive dividends and stable returns. The success of the existing REITs is paving the way for more opportunities in the commercial real estate sector.

Breakdown of REIT-Worthy Stock

According to Vestian’s data, India’s seven key cities—Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, and Kolkata—have a total of 884.1 million square feet of Grade-A office space. Out of this, 526.3 million square feet are REIT-worthy, providing a massive opportunity for expansion. Hyderabad stands out, with 74% of its total office stock qualifying for REITs, making it the top contributor.

Current Status of Listed REITs in India

India’s three listed REITs focused on office assets collectively manage 110.7 million square feet of office space. Despite this significant portfolio, there remains vast untapped potential in the market, signaling growth opportunities in the years to come.

Disclaimer: This content is based on a report by Vestian and other publicly available information.