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Multinational companies are increasingly preferring office space owned by Real Estate Investment Trusts (REITs) for establishing Global Capability Centers (GCCs) in India, according to a report by Cushman & Wakefield. 

The property consultant’s report highlights that REITs have delivered strong capital appreciation, with the three listed office REITs in India recording more than 15% capital appreciation in the 12 months ended June. 

The three office REITs in India – Brookfield India Real Estate Trust, Embassy Office Parks REIT, and Mindspace Business Parks REIT – have delivered significant capital appreciation.

GCCs have accounted for 28-29% of gross leasing volume (GLV) on average over the last four quarters up to Q1 2025, with REIT landlords capturing 40-60% of total leasing demand from GCC firms. Gross leasing of office space stood at a record 89 million square feet across seven major cities in 2024.

As at June 2025, the Indian REIT market comprised three office REITs and one retail REIT, collectively managing an operational portfolio size of more than 105 million sq ft. While the number of listed REITs has not changed through the last 12-month period, their combined portfolio size has grown by more than 12%, taking the institutional share to approximately 13% of the country’s total Grade A office stock. 

Apart from this, more than 23 million sq ft of new office space is under construction or is planned, and we can expect this new supply to be added to the total REIT portfolio in the coming years.

The financial year 2024–2025 (ending March 2025) was a strong one for India’s office REITs. The three office REITs collectively garnered leasing volumes of more than 16 million sq ft, which accounted for close to a fifth of the gross leasing volume (GLV) across the top eight cities in the country.

Interestingly, the REIT assets have managed to attract a considerable share of demand coming from global capability centers (GCCs), which is an important growth driver for India’s office markets. At a Pan-India level, GCCs have accounted for 28%–29% of GLV on average over the last four quarters up to Q1 2025. 

In contrast, REIT landlords were able to achieve a much higher share, at 40%–60% of total leasing demand coming from GCC firms, rendering institutionally owned assets the preferred choice for many multinational occupiers.

After nearly two years of underperformance, India’s office REIT stocks outperformed the Bombay Stock Exchange (BSE) Realty Index significantly. During the 12-month period up to June 2025, all three office REIT stocks delivered more than 15% capital appreciation. In contrast, the BSE Index experienced a correction. 

The key driver has been the underlying strength of India’s office real estate market, triggered by heightened demand from GCCs, engineering and manufacturing, and BFSI firms. There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs.

Consequently, all three office REITs achieved occupancy rates close to 90% as at the end of the Q1 2025 period.

A fourth office REIT is expected to make its listing debut on the bourse by the end of 2025, with Bengaluru-based Sattva Group and Blackstone-backed Knowledge Realty Trust (KRT) having already filed Draft Red Herring Prospectus (DRHP) with SEBI. With a pan-India Grade A office space portfolio of 48 million sq ft, KRT is expected to become one of the largest REITs listed in India.