India’s REIT boom: Top 5 factors that could propel penetration from 16% today to 30% by 2030

India’s Real Estate Investment Trust (REIT) market is steadily progressing from a “nascent” to “early growth” stage, with close to 140 million sq ft of real estate assets, including office and retail spaces, already getting listed. The REIT penetration in the office market could hit 25-30% by 2030, up from current levels of 16%, with REITs’ potential to unlock an additional 371 msf of Grade A office space, according to Colliers’ latest report, “REITs Unlocked: Accelerating India’s Real Estate Maturity”.

Rising demand from Global Capability Centres (GCCs), along with space uptake by technology & BFSI firms, is driving occupancy levels. “This in turn is expected to accelerate the growth of office REITs in India,” says Badal Yagnik, Chief Executive Officer, Colliers India, adding that for developers and investors, SBDs offer a massive opportunity. Moreover, participation of retail investors has also been fuelled by the REITs’ diversification into different asset classes. “With strong fundamentals in play, 25-30% of the overall office stock in India can potentially come under REITs by 2030,” says Vimal Nadar, Senior Director & Head of Research, Colliers India.