520 Mn Sq Ft Office Inventory, Yet Only 23% Is Available
Mumbai, 20 June 2025: India was a late entrant into the REIT sector; however, since REITs launched in 2019, their market capitalization has surpassed that of some major economies with matured REIT markets. Despite their growth potential, latest ANAROCK Research data finds that just 23% of the total REIT-worthy office stock – approx. 520 Mn sq. ft. – across the top 7 cities is currently listed in REIT portfolios.
Anuj Puri, Chairman – ANAROCK Group, says, “The three listed Indian REITs – Embassy Office Parks, Mindspace Business Parks and Brookfield India – have a combined portfolio of just 117.2 Mn sq. ft., which is just 23% of the overall REIT-able Indian office space market. This indicates significant headroom for future REIT listings and office market consolidation across the top 7 cities.”
With approx. 313 Mn sq. ft., the southern cities of Bengaluru, Hyderabad and Chennai currently host the maximum available REIT-worthy office stock. However, just 18% of this stock is listed in REIT portfolios:
- Bengaluru has the highest REITable office stock of approx. 162 mn sq. ft., of which just 24% or approx. 39 mn sq. ft. is currently listed under REIT portfolios; in Hyderabad, just 16% of a total 102 Mn sq. ft. of REIT-worthy office stock is actually listed; in Chennai, just 4% of 49 Mn sq. ft. REIT-complaint office stock is REIT-listed.
- In North India, Delhi-NCR currently has a total of REIT-worthy stock of 82 Mn sq. ft., of which just 30% is listed
- The top Western markets MMR and Pune have a combined REITable office stock of 118 Mn sq. ft., of which just 27% is REIT-listed. MMR has REIT-worthy office stock of approx. 80 Mn sq. ft., of which approx. 23.4 Mn sq. ft. (29%) is listed; of 38 Mn of overall REITable stock in Pune, just 24% or approx. 9 Mn sq. ft. is REIT-listed.
- Kolkata currently has REIT-suitable stock of approx. 7 Mn sq. ft., of which 43% is already listed.
“Data trends indicate that in 2023, the total REIT-worthy office stock in the top 7 cities was approx. 383 Mn sq. ft.,” says Puri. “This has grown by 36% since then to approx. 520 Mn sq. ft. currently, thanks largely to generous new office supply infusions since 2023 and also upgradation of old Grade A office stock to meet current demand and standards.”
ANAROCK data shows that approx. 106.4 Mn sq. ft. of Grade A office space has been added across the top 7 cities from 2023 till Q1 2025. Meanwhile, out of the total available Grade A office stock across the top 7 cities (approx. 850 mn sq. ft.), at least 400 Mn sq. ft. (or 47%) is older than 10 years and can be upgraded to REIT standards. This will not only increase REIT-worthy stock across cities but also help increase office rental premiums by 10-30%.
In terms of appreciation, as of 16th June 2025, India’s office REITs have shown strong 1-year performance, driven by robust leasing activity and steady rental escalations. For instance, Mindspace Business Parks REIT led the pack with a 23.34% annual return, followed by Brookfield India REIT at 15.19%, and Embassy Office Parks REIT at 9.17%.