According to Cushman & Wakefield’s latest Asia REIT Market Insight 2024–25, Indian office REITs recorded over 15% capital appreciation in the past 12 months, surpassing the performance of the BSE Realty Index, which witnessed a correction during the same period.
The study highlighted that India and China remain the key growth engines for the Asia REIT market in 2024, even as mature markets like Japan, Singapore, and Hong Kong trend towards stabilization. “India’s REIT market continues to carve a strong trajectory, with exceptional growth seen across the office sector,” said Somy Thomas, Executive Managing Director, Valuations and Co-Head, Capital Markets, India at Cushman & Wakefield.
Global capability centres power leasing momentum
A key driver behind this robust performance has been the surging leasing demand from Global Capability Centres (GCCs), which increasingly prefer institutional-grade office spaces offered by REITs. According to Cushman & Wakefield, GCCs accounted for 40%–60% of total leasing demand in REIT assets, compared to their overall average of 28–29% across India’s office market.
REITs capture bigger share of India’s grade A office market
As of June 2025, India’s REIT landscape comprises three office REITs and one retail REIT, collectively managing over 105 million sq ft of operational space, with plans to add another 23 million sq ft under development. REIT-owned properties now account for approximately 13% of India’s total Grade A office stock, a significant jump driven by demand from multinationals, BFSI firms, and engineering sectors.Catherine Chen, Director, Investor Client Intelligence & Insights, Asia Pacific at Cushman & Wakefield, noted, “India’s performance emphasizes the growing strength of the country’s institutional-grade real estate. These markets continue to create new and exciting opportunities for investors targeting Asia.”
New listings on the horizon
The Indian REIT market is set to grow further, with Knowledge Realty Trust, backed by Blackstone and Sattva Developers, expected to launch India’s fourth office REIT by the end of 2025. With 48 million sq ft of Grade A office space, it is poised to become one of the largest REITs in India upon listing.
India among Asia’s fastest growing REIT markets
While mature markets like Japan, Singapore, and Hong Kong are focusing on operational efficiencies amidst global monetary challenges, India stands out among Asia’s emerging markets. Alongside China and Thailand, India recorded a 13% growth in its REIT market during 2024, as per Cushman & Wakefield’s data. This growth is underpinned by strong economic fundamentals, increasing foreign investor interest, and rising demand for premium office spaces.
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