India's Operational Office REIT Portfolio Surges 74 Pc In H1 2026

(MENAFN- IANS) New Delhi, Sep 8 (IANS) The operational office Real Estate Investment Trust (REIT) portfolio in India expanded 74 per cent year‐on‐year to 167 million sq ft in H1 2026 from 95.8 million sq ft in H1 2025, a report said on Tuesday.

The report from ASSOCHAM–Knight Frank India said the operational retail REIT portfolio stood at 11 million sq ft while the warehousing InvIT portfolio reached 44.2 million sq ft as of June 2026.

The sharp increase in the REIT portfolio highlighted the growing role of REITs and InvITs as vehicles to monetise, aggregate and recycle capital across real estate and infrastructure-linked assets.

Roads and fibre continue to dominate the broader InvIT asset base, while warehousing is emerging as an increasingly important component, the report forecasted.

The operational office REIT portfolio represents 16 per cent of India's 1.05 million sq ft office stock and 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.

Bengaluru has the highest REIT penetration among the major office markets, with 67.6 million sq ft of REIT-backed office stock accounting for 27 per cent of the Bengaluru office inventory.

Hyderabad followed with 26.2 million sq ft of REIT-backed stock, covering 20 per cent of its office inventory. Mumbai has 24.6 million sq ft of REIT stock, equivalent to 14 per cent of its office inventory. NCR and Pune recorded a coverage of 11 per cent each. While Chennai and Kolkata saw 10 per cent coverage each, Ahmedabad remained at 1 per cent.

“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.

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, he added.

Listed office REIT platforms have a combined 36 million sq ft of office space under construction. Bengaluru accounted for the largest share at 16.3 million sq ft, followed by Mumbai at 4.6 million sq ft, Hyderabad at 3.9 million sq ft and Chennai at 3.8 million sq ft.

-IANS

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