REIT, InvIT Penetration In Indian Real Estate Set For Dramatic Surge By 2030: Colliers India
Mumbai, June 19, 2026: Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are poised for significant expansion in India, with office REIT penetration projected to hit 30% and industrial & warehousing InvIT penetration expected to reach 10% by 2030. According to the latest report by Colliers India, titled “India REITs: Gaining scale & unlocking value,” the total operational portfolio of listed REITs and InvITs has already crossed 195 million square feet, heavily propelled by the office sector.
The report notes that the market now features five office-focused REITs, one retail REIT, and one industrial & warehousing-focused InvIT. Currently, approximately 164 million square feet of office assets are under existing REITs, accounting for a 19% penetration level of the country’s total Grade A office stock. The geographic footprint shows a heavy concentration in Tier I locations for office assets, with Bengaluru commanding a dominant 42% share, followed by Hyderabad, Mumbai, and Delhi NCR at roughly 12% to 15% each. Furthermore, more than two-thirds of the stock under existing REITs is located within Secondary Business Districts (SBDs) across major office markets.
In contrast, geographic diversification is becoming highly apparent in the retail and industrial & warehousing segments, aligning with the rise of new consumption and logistics hubs. Tier II and Tier III markets currently account for 35% of the industrial & warehousing InvIT portfolio and 51% of the retail REIT portfolio.
The report highlights a massive runway for future listings, identifying an additional 370 million square feet of existing Grade A office stock that holds potential for future REIT inclusion. This incremental, REIT-worthy stock represents about 43% of the total Grade A supply across Tier I cities, with Hyderabad and Bengaluru leading the pipeline by cumulatively accounting for 40% of this space.
Commenting on the structural evolution of the market, Badal Yagnik, CEO & Managing Director, Colliers India said:
“With another leading developer recently monetizing its portfolio, the number of office REITs has expanded to five and overall operational stock within these REITs has increased from around 72 million sq ft in 2021 to over 160 million sq ft as on date. Consequently, almost one-fifth of India’s Grade A office stock across the top seven markets is currently under REITs, signaling a steady shift toward institutionalization and growing investor confidence in income-generating assets. Notably, 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. Looking ahead, REIT penetration levels in the office market can potentially reach 30% by 2030, supported by influx of high quality green-certified assets, strong occupier demand and sustained investor appetite.”
Supported by rising investor participation, robust asset performance, and favorable policies, the structural growth of these investment vehicles indicates a steady institutionalization and democratisation of India’s commercial real estate landscape over the coming years.
