India’s Office REITs See Rebound as GCC Demand Drives Leasing
16 May 2025 / 01 min read
India’s top office real estate investment trusts (REITs) have reported a strong rebound in FY25, driven by increased demand from global capability centers (GCCs) and improved occupancy levels, Mint reported. Embassy REIT, Mindspace Business Parks REIT, and Brookfield India REIT have all posted higher net operating income and leasing, signaling a robust recovery from the pandemic-induced downturn.
India’s top office real estate investment trusts (REITs) have reported a strong rebound in FY25, driven by increased demand from global capability centers (GCCs) and improved occupancy levels, Mint reported. Embassy REIT, Mindspace Business Parks REIT, and Brookfield India REIT have all posted higher net operating income and leasing, signaling a robust recovery from the pandemic-induced downturn.
Embassy REIT, which owns and operates a 51.1 million sq. ft portfolio of 14 office parks, clocked 6.6 million sq. ft of leasing in FY25, with 60% of it accounted for by GCCs across sectors. The company’s revenue and net operating income (NOI) both rose 10% in FY25, with distributions growing 8%, the Mint report says.
Mindspace REIT achieved its highest-ever annual gross leasing of 7.6 million sq. ft in FY25, with net asset value (NAV) up 10% driven by rising rentals across micro-markets. Brookfield REIT, which raised Rs 3,500 crore through a qualified institutional placement (QIP) in December, is looking to pursue acquisitions this year to expand its asset portfolio.
The rebound in the REIT space comes as gross leasing of commercial office space touched a historic high of 79 million sq. ft in 2024, according to property advisory CBRE India. The January-March period of 2025 saw 18 million sq. ft of gross leasing. Industry experts expect the office market to surpass the leasing levels of 2024 this year, with GCCs accounting for nearly 35-40% of total office space absorption.
The Indian REIT market oversees gross assets under management (AUM) of around Rs 1.52 trillion, with a market capitalization surpassing Rs 95,000 crore as of February. With a large pipeline of potential listings and acquisitions, the REIT market is poised for further growth, the report says.
