India has 370 million sq. ft of Grade A offices ripe for next REIT wave: Colliers

India's listed real estate investment trust (REIT) market could be on the cusp of its next major expansion, with nearly 370 million sq. ft of Grade A office space holding the potential to be brought under REIT structures in the coming years, according to a report by real estate consultancy Colliers.

The report estimates that India has 854 million sq. ft of Grade A office stock across its seven largest office markets. Of this, around 163 million sq. ft is already housed under listed office REITs, while another 370 million sq. ft, representing roughly 43% of the existing office inventory, is considered REIT-worthy and could be monetised in future listings.

The findings hint at a big headroom for India's REIT market, which has grown rapidly since the country's first listing in 2019 but still represents only a fraction of the commercial real estate universe.

Hyderabad and Bengaluru lead future REIT pipeline

Colliers said Hyderabad and Bengaluru together account for nearly 40% of the additional REIT-worthy office stock, making the two southern cities the biggest candidates for future REIT launches. While Bengaluru already dominates India's listed REIT landscape, Hyderabad continues to build a sizeable pipeline of institutional-grade office assets.

The report also highlighted substantial untapped potential in Chennai, where REIT penetration remains the lowest among the top seven office markets at 8%, despite around 61% of the city's Grade A office stock being suitable for future REIT inclusion.

Among micro markets, Hyderabad's Secondary Business District (SBD) and Off-SBD locations account for nearly one-fifth of India's future REITable stock, followed by Bengaluru's Outer Ring Road and Whitefield.

REIT market gains scale

India's REIT ecosystem has expanded considerably over the past five years.

The country now has seven listed real estate-focused REITs and InvITs—comprising five office REITs, one retail REIT and one industrial and warehousing InvIT—with a combined market capitalisation of more than ₹2.1 lakh crore, up from about ₹60,500 crore when only three REITs were listed five years ago. Their combined operational portfolio has crossed 195 million sq. ft, with another 37 million sq. ft under development.

According to the report, REITs are increasingly accelerating the institutionalisation and democratisation of Indian real estate, supported by healthy leasing activity, growing investor participation and favourable regulatory developments. The emergence of new structures such as Small and Medium REITs (SM-REITs), alongside greater regulatory oversight of fractional ownership platforms, is expected to further deepen the market.

Office REIT penetration at record high

The report noted that operational office assets under REITs have more than doubled from 71.8 million sq. ft in 2021 to 163 million sq. ft in the first quarter of 2026. As a result, office REIT penetration across India's top seven office markets has climbed from around 11% in 2021 to 19%, reflecting the increasing role of listed investment vehicles in commercial real estate ownership.

Bengaluru remains India's largest REIT market, accounting for 42% of the office assets under existing REITs. Nearly 30% of the city's Grade A office stock is already part of listed REIT portfolios, the highest penetration among major office markets. Hyderabad, Mumbai and Kolkata follow with penetration levels of roughly 15–20%.

GCCs and technology firms drive demand

The report attributes much of the sector's momentum to sustained demand from Global Capability Centres (GCCs) and technology companies.

Technology firms account for roughly 30–35% of tenants across existing office REIT portfolios, while BFSI companies contribute 15–20%. Since 2025, GCCs have accounted for 40–60% of quarterly leasing in REIT assets, reinforcing India's position as a global hub for research, engineering and technology operations. Cumulative gross leasing across office REIT assets has exceeded 60 million sq. ft since 2021.