India’s operational office REIT portfolio expands 72 per cent in January to June 2026: Report

Representational Image. File pic.

An Assocham-Knight Frank India report on Tuesday said India's operational office Real Estate Investment Trust (REIT) portfolio has expanded 74 per cent to 167 million square feet from January to June this year, according to news agency IANS.

The operational office REIT stood at 95.8 million square feet in the corresponding period in 2025.
Moreover, the operational retail REIT portfolio stood at 11 million square feet while the warehousing Infrastructure Investment Trusts (InvIT) portfolio touched 44.2 million square feet as of June 2026.

The increase in the office and retail REIT portfolios and InVIT reflects the growing role of REITs and InvITs as vehicles to monetise, aggregate and recycle capital across real estate and infrastructure-linked assets, it said.

"The expansion of listed REITs has strengthened the exit and capital-recycling mechanism available to institutional real estate investors," said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

He added that stabilised assets can be aggregated into listed portfolios, allowing existing investors to monetise their holdings while widening access to institutional real estate for a broader investor base.

Mumbai has third largest share of REIT stock

The operational office REIT portfolio represents 16 per cent of India's 1.05 billion square feet office stock. The under‑construction REIT pipeline is equivalent to a further 19 per cent of the existing operational REIT stock, indicating continued expansion of institutional ownership, as per IANS.

Bengaluru with 67.6 million square feet of REIT-backed office stock has the highest REIT coverage among the major office markets in the country. It accounts for 27 per cent of the Bengaluru office inventory.

Mumbai has 24.6 million square feet of REIT stock, equivalent to 14 per cent of its office inventory, while Hyderabad has 26.2 million square feet of REIT-backed stock, covering 20 per cent of its office inventory, the report noted.
The National Capital Region (NCR) and Pune have a penetration of 11 per cent each, while Chennai and Kolkata both have a coverage of 10 per cent, each.

The report further said that the listed office REIT platforms have a combined 36 million square feet of office space under construction, with Bengaluru accounting for 16.3 million square feet, followed by Mumbai at 4.6 million square feet, Hyderabad at 3.9 million square feet and Chennai at 3.8 million square feet.

In the InVIT asset base, roads and fibre continue to dominate, while warehousing is emerging as an increasingly important component.

What are REITS and InVITS?

REITs and InvITs are investment vehicles. They issue units in a public offer or through private placement to raise funds for a scheme. REITs are mandated to invest at least 80 per cent of the asset in completed and income generating properties. In India, REITS are only allowed to invest in the commercial real estate sector.

InvITs, too, are mandated to invest 80 per cent of the assets in completed and revenue-generating infrastructure projects in roads, highways, power plants, among others.

(With inputs from IANS)