The operational office REIT portfolio in India has expanded by 74% year-over-year (YoY) to 167 mn sq ft in H1 2026, from 95.8 mn sq ft in H1 2025. The sharp increase highlights the growing role of REITs and InvITs as vehicles to monetise, aggregate and recycle capital across real estate and infrastructure-linked assets, according to the latest ASSOCHAM-Knight Frank India report- ‘Building Viksit Bharat – Real Estate as a Catalyst for Growth’.

The operational retail REIT portfolio stood at 11.0 mn sq ft, while the warehousing InvIT portfolio stood at 44.2 mn sq ft as of June 2026. Roads and fibre continue to dominate the broader InvIT asset base, while warehousing is emerging as an increasingly important component.

Office remains the dominant segment of India’s REIT market

The operational office REIT portfolio represents 16% of India’s 1.05 mn sq ft office stock and the under-construction portfolio is equivalent to a further 19% of the existing operational REIT stock, indicating continued expansion of institutional ownership. Institutionalisation, however, remains uneven across markets.

Bengaluru has the highest REIT penetration among the major office markets, with 67.6 mn sq ft of REIT-backed office stock accounting for 27% of the Bengaluru office inventory. Embassy Office Park remains the largest REIT platform in the city, while the addition of Bagmane’s portfolio has materially increased listed institutional ownership.

Hyderabad follows with 26.2 mn sq ft of REIT-backed stock, covering 20% of its office inventory, supported by Knowledge Realty Trust (KRT) and Mindspace. Mumbai has 24.6 mn sq ft of REIT stock, equivalent to 14% of its office inventory. NCR and Pune recorded a coverage of 11% each. While Chennai and Kolkata have 10% coverage each, Ahmedabad remains at 1%.

36 mn sq ft Office REITs Under Construction

Listed office REIT platforms have a combined 36 mn sq ft of office space under construction. Bengaluru accounts for the largest share at 16.3 mn sq ft, followed by Mumbai at 4.6 mn sq ft, Hyderabad at 3.9 mn sq ft and Chennai at 3.8 mn sq ft.

Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, “The expansion of listed REITs has strengthened the exit and capital-recycling mechanism available to institutional real estate investors. Stabilised assets can be aggregated into listed portfolios, allowing existing investors to monetise their holdings while widening access to institutional real estate for a broader investor base.  Institutionalisation is also extending beyond office as the expansion of retail REITs is widening the geographic footprint of institutional real estate ownership beyond the established office markets.”

Saurabh Sanyal, Secretary General, ASSOCHAM, said, “Real estate is no longer just a growth beneficiary; it is becoming a critical growth enabler for India. As the country moves towards Viksit Bharat, the sector will play a pivotal role in driving investment, creating jobs and enabling the expansion of manufacturing, logistics, technology and new-age businesses. The ASSOCHAM–Knight Frank report highlights the scale of this opportunity and the need for an enabling policy ecosystem. Faster approvals, integrated infrastructure planning, digitalisation and sustainable urban development will be key to unlocking the sector’s full potential and building globally competitive cities.”

Diverse Geographic Footprint for Retail REIT

As of June 2026, the operational retail REIT portfolio has recorded at 11 mn sq ft, comprising 10.7 mn sq ft under Nexus and 0.4 mn sq ft under Brookfield.

Retail REITs also have a more dispersed geographic footprint than office REITs. About 4.6 mn sq ft, or 45% of total retail REIT stock, is located outside the eight major office markets, across cities including Chandigarh, Bhubaneswar, Amritsar, Udaipur, Mangaluru, Mysuru, Indore and Ludhiana.

The difference reflects the underlying demand drivers of the two asset classes. Office institutionalisation follows employment centres and corporate occupier markets, while retail institutionalisation follows consumer catchments, population and spending patterns.

Warehousing Expands the InvIT Opportunity Beyond Traditional Infrastructure

As of June 2026, the warehousing Infrastructure Investment Trust (InvIT) portfolio stood at 44.2 mn sq ft, comprising 32.2 mn sq ft of operational assets and a 12.0 mn sq ft development pipeline.

Warehousing is a real estate-adjacent operating asset whose characteristics increasingly resemble infrastructure, with large-scale portfolios, recurring rental income and diversified occupier bases. Dedicated warehousing InvITs can deepen institutional participation, diversify investment opportunities and strengthen India’s capital-market ecosystem.