Market Report
REITs: Reshaping India’s Commercial Space
Get access to the full Market Report
.avif)
Key Insights
1
Over 500 Mn sq ft of REIT-worthy stock across the top seven cities
2
INR 4.5 lakh cr worth of prime office stock is REIT-worthy
3
Bengaluru accounts for the highest, 33%, share of pan-India REIT-worthy stock
Key Takeaways
- Around 60% of India’s total Grade-A office space qualifies as REIT-worthy, highlighting the upside potential of REITs to transform the commercial real estate investment landscape.
- Despite producing better returns compared to the NIFTY Realty Index, the market capitalization of REITs remains relatively low. India has a market capitalization of 13.7% of the total listed real estate sector which is low compared to mature markets such as the USA (98.9%), Australia (94.8%), and UK(92.5%).
- Nearly 67% of the total REIT-worthy stock in India is green-certified which outlines the growing prominence of sustainability among Grade-A developers. Green-certified buildings are capable of commanding a rental premium of 12-14% over non-green buildings which may lure more investors.
- Introduction of SM REITs in India could list 300-350 Mn sq ft of additional office space on the stock exchanges. With a lower asset value threshold, more developers are likely to enter the REIT market.
%
%
%
No items found.
No items found.
