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The deepening market penetration of REITs as vehicles to monetise, aggregate and recycle capital across real estate assets, signals a mature financial ecosystem where commercial properties are functioning as wealth-generating instruments, rewriting the playbook for property valuation, capital recycling and investor confidence.
Short Story
According to a latest Assocham- Knight Frank India report, India’s office REIT operational area surged 74% YoY in H1 2026 to 167 msf, from 95.8 msf in H1 2025. The operational office REIT portfolio represents 16% of India’s 1.05 billion sq ft office stock and the under-construction portfolio is equivalent to a further 19% of the existing operational REIT stock. The operational retail REIT portfolio stood at 11 msf. This indicates continued expansion of institutional ownership though institutionalisation remains uneven across markets, with Bengaluru dominating the REIT penetration.
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As far as REIT penetration across major markets is concerned, Bengaluru tops 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%.
REIT Coverage Analysis: Penetration (Operational Area in mn sq ft) & Expansion Potential
| Office (Operational) | Total Office Stock | Office REIT Stock | REIT Coverage % |
| Ahmedabad | 43.8 | 0.5 | 1% |
| Bengaluru | 254.0 | 67.6 | 27% |
| Chennai | 97.1 | 9.7 | 10% |
| Hyderabad | 129.1 | 26.2 | 20% |
| Kolkata | 33.6 | 3.2 | 10% |
| MMR | 173.8 | 24.6 | 14% |
| NCR | 208.1 | 22.0 | 11% |
| Pune | 115.1 | 13.1 | 11% |
| Total | 1,054.6 | 167.0 | 16% |
Source: Knight Frank Research
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.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 REIT (Operational Area in mn sq ft) Portfolios by REIT & City, June 2026
| Cities | Nexus Select Trust | Brookfield India Real Estate Trust | Total |
| Ahmedabad | 0.9 | – | 0.9 |
| Bengaluru | 1.7 | – | 1.7 |
| Chennai | 0.7 | – | 0.7 |
| Hyderabad | 0.8 | – | 0.8 |
| Kolkata | – | – | – |
| Mumbai | 1.0 | – | 1.0 |
| NCR | 0.6 | – | 0.6 |
| Pune | 0.4 | – | 0.4 |
| Others* | 4.6 | 0.4 | 5.0 |
| Total | 10.7 | 0.4 | 11.0 |
Source: Knight Frank Research, Company Filings
*Others include cities such as Chandigarh, Bhubaneswar, Amritsar, Udaipur, Mangaluru, Mysuru, Indore and Ludhiana
As far as Retail REITs are concerned, they 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.
The rapid evolution of REITs has bridged the gap between retail capital and institutional- grade assets, bringing in phenomenal liquidity, transparency and global standards into the domestic market. As major metropolitan centres continue to back this momentum, the REIT footprint is set to expand even deeper into the country’s economic core-solidifying its role not just as a robust investment avenue, but as the primary engine driving the future of of India’s commercial skyline.
