Indian commercial real estate offers rent-yielding Grade A offices spread over 393.7m sq ft that can be listed through a Real Estate Investment Trust (REIT), or ‘REITable’ assets worth over $61bn across the top seven cities, data from JLL India has revealed. 

So far, India has witnessed the listing of three office asset-based REITs, garnering a robust response from institutional and retail investors since 2019. 

The listing of REITs in the country has introduced a real estate investment option akin to mutual funds. The sustained growth of India’s office market, coupled with the enhanced transparency fostered by REIT implementation, has created an environment conducive for large financial institutions to participate in these listings. 

“Retail and hotels have experienced robust demand following the pandemic, resulting in revised asset pricing. Warehousing has also witnessed significant growth in recent years, with global funds aggregating these assets through platforms. The listing of these asset portfolios through REITs represents the next logical step,” said Lata Pillai, senior managing director & head of capital markets, India, JLL.

Pillai added: “India’s office segment has been the sweet spot for global investors due to strong demand growth coupled with lower vacancy levels and rising rentals.”