Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in India are rapidly expanding and are projected to reach 30% penetration in office REITs and 10% in industrial & warehousing InvITs by 2030, as per a report. The surge in REIT penetration in the office market is driven by the influx of high-quality green-certified assets, strong occupier demand, and sustained investor interest, according to Colliers.
The combined portfolio of listed REITs and InvITs has exceeded 195 million sq ft, with an additional pipeline of about 37 million sq ft as of March 2026. While the office sector remains dominant, accounting for 84% of the operational portfolio, retail and industrial & warehousing segments are also gaining traction.
REITs and InvITs are playing a crucial role in institutionalizing and democratizing India’s real estate sector, fueled by increased investor participation, robust performance of assets, acquisitions, and supportive policies. Currently, India has five office-focused REITs, a retail REIT, and an industrial & warehousing-focused InvIT, showcasing the scalability of these structures in the country.
The CEO & Managing Director of Colliers India, Badal Yagnik, highlighted that nearly 20% of Grade A office stock in India’s top seven markets is under REITs, indicating a shift towards institutionalization and growing investor confidence in income-generating assets. The report also suggests that an additional 370 million sq ft of Grade A office stock could potentially be listed as future REITs, promising further growth in the office segment.
Over the past five years, operational assets under office REITs in India have more than doubled, reaching approximately 164 million sq ft by March 2026 from 72 million sq ft in 2021. This growth has led to an increase in REIT penetration in the office segment from 11% to 19% during the same period.
Bengaluru leads in REIT penetration among Tier I office markets, with around 30% of the city’s Grade A office stock already under REITs. Hyderabad, Mumbai, and Pune follow closely with REIT penetration ranging from 15% to 20%. Notably, more than two-thirds of office stock under existing REITs are situated in Secondary Business Districts (SBDs) of major cities.
