Indian REITs drive growth in commercial real estate market
Real Estate

Indian REITs drive growth in commercial real estate market

Data from JLL India reveals that the Indian commercial real estate market offers high-quality office spaces spanning a total area of 393.7 million square feet, capable of generating rental income. These assets, valued at over $61 billion, can be listed through Real Estate Investment Trusts (REITs). Since 2019, the listing of three offices asset-based REITs in India has received strong interest from institutional and retail investors.

The introduction of REIT listings in India has provided an investment option in real estate similar to mutual funds. The consistent growth of the Indian office market, coupled with the increased transparency brought about by REIT implementation, has created a favourable environment for major financial institutions to participate in these listings.

Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL, stated that retail and hotel sectors have witnessed strong demand post-pandemic, resulting in revised asset pricing. In recent years, warehousing has also experienced significant growth, with global funds aggregating these assets through various platforms. Listing these asset portfolios through REITs is seen as the next logical step in this progression.

Pillai further anticipates that the Indian real estate market will witness additional REIT listings of alternative asset classes, while the office sector will continue to see steady growth in REIT listings.

Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, highlighted that India's office segment has been highly attractive to global investors due to robust demand growth, low vacancy rates, and rising rental prices. Institutional investments in office spaces reached $28 billion during the period from 2005 to 2022, accounting for a 42 per cent share of total investments across all real estate segments.

The first three REIT listings in India predominantly consisted of office assets. Among the top seven cities, Bengaluru holds the largest share of office space at 32 per cent, followed by Delhi NCR at 15 per cent and Mumbai at 14 per cent. The assessment of potential REIT stocks considers factors such as asset size, quality, ownership pattern, and occupancy levels.

The office spaces managed by REITs have experienced significant growth, expanding three-fold from 24.8 million square feet in March 2019 to 74.4 million square feet in March 2023. The revenues of REITs have also seen a substantial increase, attributed to their ability to raise portfolio lease rentals. Over the past three years, these rentals have grown at a compound annual growth rate (CAGR) of 5.5 per cent, compared to 2 per cent for similar non-listed assets.

Also Read
5.58 lakh homes could be completed in 2023 across 7 cities
NCR emerges as thriving commercial realty hub


Data from JLL India reveals that the Indian commercial real estate market offers high-quality office spaces spanning a total area of 393.7 million square feet, capable of generating rental income. These assets, valued at over $61 billion, can be listed through Real Estate Investment Trusts (REITs). Since 2019, the listing of three offices asset-based REITs in India has received strong interest from institutional and retail investors. The introduction of REIT listings in India has provided an investment option in real estate similar to mutual funds. The consistent growth of the Indian office market, coupled with the increased transparency brought about by REIT implementation, has created a favourable environment for major financial institutions to participate in these listings. Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL, stated that retail and hotel sectors have witnessed strong demand post-pandemic, resulting in revised asset pricing. In recent years, warehousing has also experienced significant growth, with global funds aggregating these assets through various platforms. Listing these asset portfolios through REITs is seen as the next logical step in this progression. Pillai further anticipates that the Indian real estate market will witness additional REIT listings of alternative asset classes, while the office sector will continue to see steady growth in REIT listings. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, highlighted that India's office segment has been highly attractive to global investors due to robust demand growth, low vacancy rates, and rising rental prices. Institutional investments in office spaces reached $28 billion during the period from 2005 to 2022, accounting for a 42 per cent share of total investments across all real estate segments. The first three REIT listings in India predominantly consisted of office assets. Among the top seven cities, Bengaluru holds the largest share of office space at 32 per cent, followed by Delhi NCR at 15 per cent and Mumbai at 14 per cent. The assessment of potential REIT stocks considers factors such as asset size, quality, ownership pattern, and occupancy levels. The office spaces managed by REITs have experienced significant growth, expanding three-fold from 24.8 million square feet in March 2019 to 74.4 million square feet in March 2023. The revenues of REITs have also seen a substantial increase, attributed to their ability to raise portfolio lease rentals. Over the past three years, these rentals have grown at a compound annual growth rate (CAGR) of 5.5 per cent, compared to 2 per cent for similar non-listed assets. Also Read 5.58 lakh homes could be completed in 2023 across 7 citiesNCR emerges as thriving commercial realty hub

Next Story
Infrastructure Urban

GST Bachat Utsav Showcases Nationwide Relief and Growth Momentum

Union Ministers Nirmala Sitharaman, Piyush Goyal, and Ashwini Vaishnaw jointly addressed a press conference in New Delhi on the GST Bachat Utsav, underscoring the far-reaching benefits of the Next-Generation GST reforms implemented ahead of Diwali.Finance Minister Nirmala Sitharaman announced that the revised GST rates—effective from the first day of Navratri—have simplified compliance by reducing slabs from four to two and ensuring greater benefits to consumers. The Finance Ministry is closely tracking 54 essential items to confirm that the lower tax rates are being passed on fully to end..

Next Story
Infrastructure Transport

Indian Railways Operates 12,000 Special Trains for Festive Rush

Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Ashwini Vaishnaw, reviewed passenger movement at the Railway Board War Room and appreciated staff for their round-the-clock efforts during the festive season. He extended Diwali greetings to railway personnel across the country.To meet the surge in travel demand during Puja, Diwali, and Chhath, Indian Railways has deployed 12,011 special trains—up from 7,724 last year—ensuring smooth and comfortable travel for passengers nationwide. Between 1 and 19 October 2025, 3,960 special..

Next Story
Infrastructure Urban

TRAI Evaluates Mobile Network Quality Across Assam Districts

The Telecom Regulatory Authority of India (TRAI) has released its Independent Drive Test (IDT) report for the Assam Licensed Service Area, evaluating network performance across Silchar city and Hailakandi and Karimganj districts. Conducted between 18 and 22 August 2025, the tests covered 284 km of city routes, 10 hotspot locations, and 2.4 km of walk tests.The assessment, supervised by the TRAI Regional Office, Kolkata, examined real-world service quality across 2G, 3G, 4G, and 5G technologies in both urban and rural zones. Key parameters included call setup success rate, drop call rate, laten..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?