Real Estate Investment Trusts (REITs) penetration in office market can reach 25-30% by 2030: Colliers India

India’s four listed office Real Estate Investment Trusts (REITs) are projected to expand their coverage from the current 16% to 30% of Grade A office space in the next five years, driven by rising demand from Global Capability Centres (GCCs). According to Colliers’ report ‘REITs Unlocked: Accelerating India’s Real Estate Maturity,’ the four REITs presently manage nearly 133 million sq. ft. of Grade A office space, while another 371 million sq. ft., or about 46% of existing stock, holds potential for future REIT listings.
Colliers highlighted that new listings are fuelling the momentum, a broader occupier base, and increasing institutionalisation in the sector. Bengaluru accounts for 24% of additional Reit-able stock, followed by Hyderabad at 19%. Existing REITs also have about 34 million sq. ft. of under-construction supply, expected to be operational in the next 12-24 months. Overall, 223 million sq. ft., or 60% of Reit-able stock, is concentrated in secondary business districts across the top seven cities. Strong demand is reflected in occupancy rates above 86%, largely driven by Global Capability Centre (GCC), technology, and Banking, Financial Services, and Insurance (BFSI) firms. Notably, 86% of operational office portfolios under REITs are already green-certified, with a target of achieving 100% certification and increasing renewable energy usage by 30-35% in the coming years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.