NEW DELHI— India’s office real estate investment trusts (REITs) have outpaced the BSE Realty Index, delivering more than 15 percent capital appreciation over the 12 months ending June 2025, according to a report released Thursday by Cushman & Wakefield.
The strong performance is attributed to continued strength in India’s office real estate market, driven by rising demand from global capability centers (GCCs), engineering and manufacturing firms, and companies in the banking, financial services, and insurance (BFSI) sectors. A growing preference among tenants for premium-grade office assets has also significantly benefited REITs, the report said.
India’s office REIT segment saw robust momentum throughout 2024 and is expected to continue attracting substantial investor interest in the current year.
In the financial year 2024–25 (ending March 2025), the country’s three listed office REITs recorded leasing volumes exceeding 16 million square feet, accounting for nearly 20 percent of total gross leasing activity across the top eight Indian cities.
As of June 2025, India’s REIT market included three office REITs and one retail REIT, collectively managing over 105 million square feet of operational assets. Although the number of listed REITs has remained unchanged over the past year, their combined portfolios grew by more than 12 percent, increasing the institutional share of India’s total Grade A office stock to approximately 13 percent.
Additionally, over 23 million square feet of new office space is either under construction or planned by the existing office REITs, with much of it expected to be added to REIT portfolios in the coming years.
Global capability centers have been a major source of leasing demand, playing a critical role in the expansion of India’s office real estate sector. GCCs have contributed between 28 and 29 percent of gross leasing volume nationwide over the past four quarters, through Q1 2025.
“India’s REIT market continues to chart a strong trajectory, especially in the office sector,” said Somy Thomas, Executive Managing Director of Valuations and Co-Head of Capital Markets, India at Cushman & Wakefield. “Multinational companies, particularly GCCs, have driven record leasing activity and now represent a significant share of the country’s Grade A office stock.”
Thomas added that there is a clear and growing preference among occupiers for high-quality office spaces, which has translated into strong performance for REITs. All three office REITs in India achieved occupancy rates near 90 percent at the end of Q1 2025.
The broader Asia REIT market is also evolving, balancing stability in mature economies with expansion across emerging markets, the report noted. (Source: IANS)
