Office REIT market in India likely to grow by 30 percent in 2030 – Report

Indian commercial real estate is likely to experience a boom, as the office REIT in India is estimated to grow manifold. The workspace market is estimated to record 30% rise by 2030, according to the Colliers India report.

At present, the segment's percentage is nearly 19 percent. Similarly, the industrial and warehousing InvITs will see a 7-10 percent rise by 2030. The figure for the same presently stands at 4-5 percent. Interestingly, the institutional grade assets and market formalisation act as an ancillary to this segment.

While the Government backs REIT investments, the listed operational portfolios under REITs and InvITs in real estate in India, growth is certain. By March 26’, the operational immovable assets in the country are over 195 million sq ft.

According to the reports, these establishments hold an upcoming pipeline of nearly 37 million sq ft. Out of the listed REIT and InvITs portfolios, office spaces occupy approximately 84 per cent of the assets.

In its report, Colliers India said that retail, industrial, and warehousing industries are increasingly gaining momentum.

Since 2021, operational office spaces in India have doubled from nearly 72 million sq ft to approx 126 million sq ft in March 2026. Interestingly, the office REIT space increased from 11 percent to 19 percent in the same tenure.

In the case of office REIT space inclusion in Tier I cities, Bengaluru records the highest office space. The city holds 30 percent of the present Grade ‘A’ office stock under the listed REIT. While 15-20 percent of penetration levels are visible in Hyderabad, Mumbai, and Pune. 

Out of the total 164 million sq ft office under-listed REIT, Bangalore holds 43 percent alone. Followed by Hyderabad, Mumbai, and Delhi-NCR with 12-15 percent share respectively.

Over two-thirds of Office Stock under existing listed REITs are located in Secondary Business Districts

“With an additional 370 million sq ft of existing Grade – A office stock having the potential to be listed as future REITs, the runway for REIT growth in the office segment remains promising”, said, Badal Yagnik, CEO & Managing Director, Colliers India.
Together, Hyderabad and Bangalore account for approximately 40 percent of the additional office stock with future REIT potential. Similarly, at the micro-market level, nearly 85-95 percent of additional REIT-able stock in both these cities is situated in secondary business districts.

Furthermore, in cities like Kolkata, Mumbai, and Pune, several REIT-able office spaces are located in the periphery of business districts. Followed by Delhi-NCR, where 60 percent of REIT-able office spaces are positioned in business districts.

In Q1, 2026, leasing assets under the REIT-able office stocks climb up to 5 million sq ft. It is beyond the average quarterly absorption level since 2021, which stood at 95 percent. In the said year, office REITs in India logged approximately over 50 million sq ft gross leasing activity.

In 2022, three listed REITs had a cumulative market capitalization ranging between Rs. 60,000 – Rs. 65,000 Crore. Now, the listed REITs and InvITs hold a value of approximately over Rs. 2.1 lakh crore.

The report by Colliers India, states a massive growth momentum backed by infrastructure and development will be seen in Tier – II and Tier –III cities.