India's developers hold over 300 million sq ft of office space ripe for REIT purchases

A recent Equirus Securities report highlights that developers and high-net-worth investors in India possess roughly 307 million square feet of Grade A, non-strata office space, representing a sizable acquisition target for real-estate investment trusts. India’s organised office market totals about 854 million square feet, of which developers and wealthy owners hold nearly 620 million. REITs could tap this inventory for stabilized properties that deliver immediate cash flow as well as near-completion projects that support future growth, with large deals of 5-10 million square feet or more possible.

Rental rates are expected to rise between 2.9% in Hyderabad and 5.3% in Bengaluru from 2025 to 2027. REIT holdings have already expanded from 71.8 million to 163 million square feet since 2021, raising their share of total office stock to roughly 19%. Bengaluru accounts for about 46% of the listed office REITs’ gross asset value, underscoring the market’s concentration in that city.