Listed REITs can expand as 47% of office stock is over 10 yrs old: Anarock

Anarock and Colliers reports show only 117.2 million sq. ft. under listed REITs in India with ageing Grade A stock and micro-market concentration offering growth opportunities

Listed real estate investment trusts (REITs) in the office space segment have significant scope for consolidation in India, with room for more listed entities. Only 117.2 million sq. ft. is held by the country’s three listed REITs—Embassy Office Parks, Mindspace Business Parks and Brookfield India—out of the total 520 million sq. ft. of office space considered suitable for REITs, according to data from Anarock Group.

 

“This indicates significant headroom for future REIT listings and office market consolidation across the top seven cities,” said Anuj Puri, chairman of Anarock Group, noting that only 23 per cent of REIT-suitable office stock across the top seven cities is currently listed. 

   

Among individual cities, Bengaluru leads with 162 million sq. ft. of REIT-suitable office space, but only 24 per cent is listed. Hyderabad follows with 102 million sq. ft. and a listing ratio of 16 per cent, while Chennai has 49 million sq. ft. but just 4 per cent under listed REITs.

 

In the north, Delhi-NCR has 82 million sq. ft. of REIT-worthy stock, with 30 per cent listed. The western markets of Mumbai Metropolitan Region (MMR) and Pune together account for 118 million sq. ft., with 27 per cent listed. In contrast, Kolkata has the highest listing ratio, with 43 per cent of its 7 million sq. ft. already under listed REITs.

 

Further, according to Colliers, 56 per cent of India’s 488 million sq. ft. of REIT-worthy office stock is concentrated in the top 10 micro markets. Key zones in Bengaluru (ORR and Whitefield) and Hyderabad (SBD and Off SBD) alone account for 38 per cent of this stock, with over 35 million sq. ft. already under listed REITs. As of Q1 2025, 72 per cent of the 275 million sq. ft. of Grade A inventory in these top micro markets is either REIT-listed or has the potential to be listed. 

 

Anarock data also shows that 106.4 million sq. ft. of Grade A office space was added between 2023 and Q4 of 2025 across these cities. Of the total Grade A stock of approximately 850 million sq. ft., at least 400 million sq. ft. (or 47 per cent) is over 10 years old and can be upgraded to meet REIT standards.

 

This ageing stock, if refurbished, could significantly expand the REIT-worthy pool and also drive office rental premiums up by 10 to 30 per cent, highlighting the latent potential in India’s REIT market.

 

These trends, along with strong one-year returns as of mid-June 2025—with Mindspace at 23.34 per cent, Brookfield at 15.19 per cent and Embassy at 9.17 per cent—point to continued momentum for India’s REIT sector.