Office REIT Penetration May Reach 30% by 2030

22 Jun 2026 CW Team

The findings are part of Colliers’ report, India REITs: Gaining scale & unlocking value. The report says the operational portfolio across listed REITs and InvITs has crossed 195 million sq ft, with an upcoming pipeline of about 37 million sq ft as of March 2026.

Office assets continue to dominate the portfolio, accounting for around 84 per cent of the existing REIT and InvIT stock. Existing office assets under REITs stand at about 164 million sq ft, while industrial and warehousing assets account for 20.8 million sq ft and retail assets for 10.5 million sq ft.

Colliers said operational office assets under REITs have more than doubled over the past five years, rising from around 72 million sq ft in 2021 to about 164 million sq ft by March 2026. This has increased office REIT penetration from 11 per cent to 19 per cent during the period.

Bengaluru has the highest REIT penetration among Tier-I office markets, with about 30 per cent of the city’s existing Grade A office stock already listed under REITs. Hyderabad, Mumbai and Pune follow with REIT penetration of about 15–20 per cent.

The report also said about 370 million sq ft of existing Grade A office stock has the potential to be included in future REITs. Hyderabad and Bengaluru together account for around 40 per cent of this incremental stock.

Badal Yagnik, CEO and Managing Director, Colliers India, said almost one-fifth of India’s Grade A office stock across the top seven markets is currently under REITs, signalling a steady shift towards institutionalisation and growing investor confidence in income-generating assets.

He added that office REIT penetration could potentially reach 30 per cent by 2030, supported by high-quality green-certified assets, strong occupier demand and sustained investor appetite.

Leasing across office REIT assets has crossed 60 million sq ft since 2021, driven mainly by technology and BFSI firms. In Q1 2026, leasing in REIT assets touched about 5 million sq ft, exceeding average quarterly absorption levels since 2021 by around 95 per cent. Occupancy levels across listed office REITs exceeded 90 per cent as of March 2026.

Technology firms account for around one-third of the office REIT tenant mix, followed by BFSI occupiers with a 15–20 per cent share. Global Capability Centres have emerged as a major demand driver, contributing 40–60 per cent of space uptake in assets under REITs.

Vimal Nadar, National Director and Head, Research, Colliers India, said the cumulative market capitalisation of the seven listed REITs and InvITs with underlying real estate assets has crossed Rs 2,100 billion, up from Rs 600–650 billion in 2022. He added that the number of unitholders has grown more than five times during the same period.

Colliers said robust occupier demand, institutional-grade assets, greater retail and institutional investor participation, regulatory support and tech-enabled platforms are expected to drive the next phase of REIT and InvIT growth in India."

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Office REIT penetration in India is expected to rise from the current 19 per cent to 25–30 per cent by 2030, while industrial and warehousing InvIT penetration may increase from 4–5 per cent to 7–10 per cent, according to Colliers India.The findings are part of Colliers’ report, India REITs: Gaining scale & unlocking value. The report says the operational portfolio across listed REITs and InvITs has crossed 195 million sq ft, with an upcoming pipeline of about 37 million sq ft as of March 2026.Office assets continue to dominate the portfolio, accounting for around 84 per cent of the existing REIT and InvIT stock. Existing office assets under REITs stand at about 164 million sq ft, while industrial and warehousing assets account for 20.8 million sq ft and retail assets for 10.5 million sq ft.Colliers said operational office assets under REITs have more than doubled over the past five years, rising from around 72 million sq ft in 2021 to about 164 million sq ft by March 2026. This has increased office REIT penetration from 11 per cent to 19 per cent during the period.Bengaluru has the highest REIT penetration among Tier-I office markets, with about 30 per cent of the city’s existing Grade A office stock already listed under REITs. Hyderabad, Mumbai and Pune follow with REIT penetration of about 15–20 per cent.The report also said about 370 million sq ft of existing Grade A office stock has the potential to be included in future REITs. Hyderabad and Bengaluru together account for around 40 per cent of this incremental stock.Badal Yagnik, CEO and Managing Director, Colliers India, said almost one-fifth of India’s Grade A office stock across the top seven markets is currently under REITs, signalling a steady shift towards institutionalisation and growing investor confidence in income-generating assets.He added that office REIT penetration could potentially reach 30 per cent by 2030, supported by high-quality green-certified assets, strong occupier demand and sustained investor appetite.Leasing across office REIT assets has crossed 60 million sq ft since 2021, driven mainly by technology and BFSI firms. In Q1 2026, leasing in REIT assets touched about 5 million sq ft, exceeding average quarterly absorption levels since 2021 by around 95 per cent. Occupancy levels across listed office REITs exceeded 90 per cent as of March 2026.Technology firms account for around one-third of the office REIT tenant mix, followed by BFSI occupiers with a 15–20 per cent share. Global Capability Centres have emerged as a major demand driver, contributing 40–60 per cent of space uptake in assets under REITs.Vimal Nadar, National Director and Head, Research, Colliers India, said the cumulative market capitalisation of the seven listed REITs and InvITs with underlying real estate assets has crossed Rs 2,100 billion, up from Rs 600–650 billion in 2022. He added that the number of unitholders has grown more than five times during the same period.Colliers said robust occupier demand, institutional-grade assets, greater retail and institutional investor participation, regulatory support and tech-enabled platforms are expected to drive the next phase of REIT and InvIT growth in India.

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