India’s office market is gaining momentum as global capability centres (GCCs) and front-office occupiers drive leasing demand, according to Shirish Godbole, chief executive officer of Knowledge Realty Trust (KRT), India’s largest real estate investment trust by market capitalisation.
Godbole, who is also chairperson of the Indian REITs Association, told Business Standard that demand was strong from both GCCs and front-office users. “India is experiencing a very good period of office demand, both from a GCC and a front-office standpoint. We are obviously benefiting because of that,” he said.
The comments came after KRT announced its quarterly results. The trust’s net operating income rose 15 per cent year-on-year in the second quarter of financial year 2026-27, with the growth coming organically from its existing assets, Godbole said.
KRT achieved gross leasing of 0.8 million square feet during the quarter. Its cumulative leasing for the first half of FY27 reached 2.2 million square feet. GCCs accounted for 42 per cent of total demand, compared with around 30 per cent four years ago, indicating a larger role for these occupiers in the trust’s leasing activity.
The trust’s revenue increased 13 per cent year-on-year to ₹1,272.5 crore in the quarter. It declared record distributions of ₹764 crore for the period. Occupancy stood at 93 per cent by area and 94 per cent by value, with the company expecting occupancy to reach approximately 94-95 per cent over the following two quarters.
KRT has around one-third of its portfolio, by value, in Mumbai. This gives it exposure to front-office occupiers including law firms, accounting firms, media companies and large Indian conglomerates. The concentration also links the trust’s performance to demand for centrally located and professionally managed commercial workplaces in one of the country’s largest office markets.
Godbole said tightening visa and immigration policies in countries including the United States, Australia and Canada could further benefit India’s office sector. “Restrictions in countries such as the US, Australia and Canada are making immigration increasingly difficult. This could accelerate the movement of work towards India, which is positive from an office market perspective,” he said.
The trust is looking to expand its presence in Chennai and Gurugram, where it currently has one asset each, while also exploring opportunities in Pune, where it has no existing exposure. Any such expansion would extend KRT’s geographic presence beyond its current portfolio and increase its participation in established Indian office hubs.
The performance comes amid a broadening investor base for Indian REITs. According to Godbole, the number of investors has risen from around 4,000 in 2019 to approximately five lakh currently, with further growth expected. The increase gives listed office assets a wider retail and institutional ownership base while linking commercial real estate returns more closely to the performance of occupied workplaces.
KRT’s next reported occupancy performance, leasing activity and expansion decisions will determine whether the current demand translates into sustained growth across its portfolio and targeted office markets.
