India's Office REITs Surge Amid Demand
Real Estate

India's Office REITs Surge Amid Demand

In response to surging office demand in India, real estate investment trusts (REITs) are rapidly expanding their portfolios through strategic acquisitions. Embassy Office Parks REIT, Brookfield India Real Estate Trust, and Mindspace Business Parks REIT collectively control approximately 100 million square feet (msf) of office space, representing about 12.5% of India's total office stock and boasting a combined market capitalization of $8 billion.

Since its inception in 2019, Embassy REIT has grown its completed area by 47%, increasing from 24 msf to over 45 msf through acquisitions. Recently, it expanded into Chennai, adding a 5 msf business park from its sponsor, Bengaluru-based Embassy Group. Future developments include an additional 2 msf.

Brookfield REIT expanded its operating area by 47% last year, with another 16% growth anticipated following a recent acquisition. The REIT acquired 6.5 msf of space in FY24 in the National Capital Region and Mumbai and is set to add another 3.3 msf through a deal with Bharti Enterprises. Brookfield's parent entity holds 54 msf of office space in India, presenting a substantial acquisition pipeline.

Mindspace REIT also demonstrated growth with acquisitions in Chennai and Pune, alongside developing a mixed-use asset in Mumbai. With a sponsor pipeline of around 15 msf, Mindspace is well-positioned for future expansion, exploring both sponsor and third-party assets.

A report by CREDI-CRE Matrix forecasts office demand in India to exceed 70 msf in 2024, driven by government initiatives in manufacturing, digital, and physical infrastructure investments. This escalating demand, particularly from global capability centers, underpins the robust expansion strategies of India's leading office REITs.

In response to surging office demand in India, real estate investment trusts (REITs) are rapidly expanding their portfolios through strategic acquisitions. Embassy Office Parks REIT, Brookfield India Real Estate Trust, and Mindspace Business Parks REIT collectively control approximately 100 million square feet (msf) of office space, representing about 12.5% of India's total office stock and boasting a combined market capitalization of $8 billion.Since its inception in 2019, Embassy REIT has grown its completed area by 47%, increasing from 24 msf to over 45 msf through acquisitions. Recently, it expanded into Chennai, adding a 5 msf business park from its sponsor, Bengaluru-based Embassy Group. Future developments include an additional 2 msf.Brookfield REIT expanded its operating area by 47% last year, with another 16% growth anticipated following a recent acquisition. The REIT acquired 6.5 msf of space in FY24 in the National Capital Region and Mumbai and is set to add another 3.3 msf through a deal with Bharti Enterprises. Brookfield's parent entity holds 54 msf of office space in India, presenting a substantial acquisition pipeline.Mindspace REIT also demonstrated growth with acquisitions in Chennai and Pune, alongside developing a mixed-use asset in Mumbai. With a sponsor pipeline of around 15 msf, Mindspace is well-positioned for future expansion, exploring both sponsor and third-party assets.A report by CREDI-CRE Matrix forecasts office demand in India to exceed 70 msf in 2024, driven by government initiatives in manufacturing, digital, and physical infrastructure investments. This escalating demand, particularly from global capability centers, underpins the robust expansion strategies of India's leading office REITs.

Next Story
Technology

AirBrick Infra Sets Rs 1 billion Target, Expands to Dubai and Tier-II Cities

AirBrick Infra, one of India’s fastest-growing AI-led commercial interior design and build firms, has announced a sales order target of Rs 1 billion for FY 2025–26. The projection represents a 50 per cent growth over the previous fiscal year and reflects rising demand, increased repeat business, and the company's robust tech-first delivery model.  Now in its third year of operations, AirBrick continues its rapid scale-up, having successfully delivered over 70 projects spanning 3 lakh sq ft in FY 2023–24. FY 2024–25 witnessed the onboarding of several Fortune 500 clients, sett..

Next Story
Resources

Virtusa Foundation Powers Green Education Drive in Bengaluru

The Virtusa Foundation, CSR arm of digital engineering and technology leader Virtusa Corporation, has announced key infrastructure and mobility initiatives at the Ramakrishna Mission, Shivanahalli, Bengaluru. The launch marks the inauguration of a 16-room residential facility for lady teachers and the deployment of two solar-powered electric buses, underscoring Virtusa’s commitment to its core pillars of Education, Environment and Empowerment (3Es).  Located on the forest fringe near Bannerghatta National Park, the initiative supports tribal and underserved communities, complementi..

Next Story
Infrastructure Urban

Godrej Enterprises Drives India’s Smart Green Logistics Shift

As India accelerates its transformation into a global manufacturing and logistics hub, Godrej Enterprises Group (GEG) is taking the lead with its smart, sustainable intralogistics solutions. Through its Material Handling Equipment (MHE) and Storage Solutions businesses, GEG is redefining operational efficiency in modern warehouses and factories using IoT, automation, and AI. GEG has consistently maintained a 20–25 per cent market share in the intralogistics sector over the past three years. Today, over 37 per cent of GEG’s revenues come from its Good & Green portfolio, and its net..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?