+
REITable office assets expected to be valued at $ 35 billion: JLL India
Real Estate

REITable office assets expected to be valued at $ 35 billion: JLL India

The Indian commercial real-estate market is estimated to provide 294 million sq ft of REITable space from the existing office stock. According to JLL’s latest report, India REITs - Heralding a New Era in Real-Estate Investments, these REITable assets are expected to be valued at $ 35 billion.

Rising transparency levels, progressive regulations and a robust commercial real-estate market in the country have made the segment a favourite among institutional investors, according to report. Investors have allocated nearly $ 17 billion in the form of direct investments as well as through entity-level investments from 2006-2019 in the office space.

The report states that with 33 per cent share of REITable space, Bengaluru will provide the highest REITable assets totalling 97.8 million sq ft, worth $ 10.7 billion, followed by Mumbai with a 17 per cent share of total REITable space at 49.7 million sq ft worth $ 8.6 billion. Delhi-NCR and Chennai follow Mumbai, both in terms of space and value. With large and quality IT spaces occupied by prominent global players, Bengaluru will be the most favoured city for REITable assets.

Emergence of new office-space occupiers, continued demand from IT and ITES, global inhouse centres along with the BFSI space are expected to keep demand for office space robust over the next three years. According to Dr Samantak Das, Chief Economist and Head of Research, JLL India, “Indian office space holds the potential to offer an additional 101 million sq ft for REIT from new office completion expected during 2019-21. This could help upcoming REITs to gain from an upside in rentals as well as capital appreciation. While the strong institutional flow of funds into real estate will continue to provide initial momentum towards the growth of REITs in India, active participation of insurance and pension funds in future will help the long-term growth of the market.”


India has already seen its first REIT listing from the Embassy Group-Blackstone JV in March this year. With a portfolio of 32.6 million sq ft, the listing is also Asia’s largest in terms of area. “Growing knowledge of REITs will ensure acceptability and gradual increase of interest from retail investors,” reckons Ramesh Nair, CEO and Country Head, JLL India. “We expect to see other asset classes like retail, warehousing and hospitality also offering REITable assets in time to come.”

The Indian commercial real-estate market is estimated to provide 294 million sq ft of REITable space from the existing office stock. According to JLL’s latest report, India REITs - Heralding a New Era in Real-Estate Investments, these REITable assets are expected to be valued at $ 35 billion. Rising transparency levels, progressive regulations and a robust commercial real-estate market in the country have made the segment a favourite among institutional investors, according to report. Investors have allocated nearly $ 17 billion in the form of direct investments as well as through entity-level investments from 2006-2019 in the office space. The report states that with 33 per cent share of REITable space, Bengaluru will provide the highest REITable assets totalling 97.8 million sq ft, worth $ 10.7 billion, followed by Mumbai with a 17 per cent share of total REITable space at 49.7 million sq ft worth $ 8.6 billion. Delhi-NCR and Chennai follow Mumbai, both in terms of space and value. With large and quality IT spaces occupied by prominent global players, Bengaluru will be the most favoured city for REITable assets. Emergence of new office-space occupiers, continued demand from IT and ITES, global inhouse centres along with the BFSI space are expected to keep demand for office space robust over the next three years. According to Dr Samantak Das, Chief Economist and Head of Research, JLL India, “Indian office space holds the potential to offer an additional 101 million sq ft for REIT from new office completion expected during 2019-21. This could help upcoming REITs to gain from an upside in rentals as well as capital appreciation. While the strong institutional flow of funds into real estate will continue to provide initial momentum towards the growth of REITs in India, active participation of insurance and pension funds in future will help the long-term growth of the market.” India has already seen its first REIT listing from the Embassy Group-Blackstone JV in March this year. With a portfolio of 32.6 million sq ft, the listing is also Asia’s largest in terms of area. “Growing knowledge of REITs will ensure acceptability and gradual increase of interest from retail investors,” reckons Ramesh Nair, CEO and Country Head, JLL India. “We expect to see other asset classes like retail, warehousing and hospitality also offering REITable assets in time to come.”

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?