Bengaluru leads Indian REITs office market with 27% penetration
A report by Assocham and Knight Frank reveals Bengaluru has the highest Real Estate Investment Trust (REIT) adoption in major Indian cities, while three southern urban centers collectively hold the majority of listed REIT inventory.
Assocham and Knight Frank released a joint analysis titled Building Viksit Bharat which found that three southern cities own the most Real Estate Investment Trust space. Bengaluru leads major Indian markets with 27 per cent of its office stock held by REITs, amounting to 67.6 million square feet. Hyderabad follows with 20 per cent of its inventory backed by listed vehicles totaling 26.2 million square feet. Chennai holds 13.4 million square feet of REIT-owned space. Together, these three locations account for 103.5 million square feet, representing 62 per cent of all office portfolio space owned by listed REITs nationwide.
Four other major cities comprise the nation's eight largest markets. New Delhi and Pune hold portions of the remaining inventory, while Kochi contributes to the total which stands at 1,054.6 million square feet as of June this year. The five listed office-realty investment trusts operating in India are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Knowledge Realty Trust, and Bagmane Prime Office.
Embassy Office Park remains the single largest REIT platform in Bengaluru following the integration of Bagmane's portfolio into the listed institutional ownership structure. The report indicates that listed REITs are increasingly serving as mechanisms to monetize, aggregate, and recycle capital across real estate assets in India.
