India’s listed real estate investment trusts are entering a new phase of growth, with Bengaluru emerging as the central pillar of the country’s publicly traded property assets. The southern technology hub now hosts nearly two-thirds of India’s listed REIT stock, underlining how deeply office-led urban economies are shaping institutional investment flows and why the next stage of expansion matters for cities, jobs and infrastructure.
Market assessments by real estate analysts indicate that Bengaluru alone represents over 60 per cent of the country’s listed REIT assets, reflecting its concentration of Grade A office space, global occupiers and long-term leasing stability. Hyderabad and Mumbai follow, together accounting for a significant share of remaining stock, but the distribution also highlights a narrow asset base that policymakers and investors are increasingly keen to widen. This concentration has delivered dependable returns so far. Industry experts point to yields in the 6–7 per cent range, supported by structured rental escalations and relatively stable occupancy. For pension funds, insurers and retail investors seeking exposure to India’s urban growth story without direct ownership risks, the India REIT market has become a credible gateway into institutional real estate.
What is changing now is the type of assets expected to enter these vehicles. Until recently, office campuses dominated listings. That model is beginning to stretch as cities diversify economically and as infrastructure investment reshapes logistics and consumption patterns. Urban planners note that improved highways, freight corridors and digital infrastructure are creating investable opportunities in warehousing, data centres and organised retail sectors with different energy profiles, land use impacts and employment outcomes. Globally, industrial and logistics REITs have expanded rapidly, driven by e-commerce, supply chain realignment and demand for last-mile delivery. Data centres, fuelled by cloud computing and artificial intelligence workloads, are also becoming a mainstream institutional asset. Indian markets are showing early signs of a similar shift, with sharp year-on-year growth in industrial leasing and a marked rise in institutional capital flowing into logistics and warehousing.
For cities, this evolution has broader implications. Diversified REIT assets can encourage more balanced urban development, reducing over-reliance on central business districts and spreading employment closer to residential clusters. Sustainability specialists also argue that professionally managed REIT assets tend to adopt higher standards of energy efficiency, water management and reporting increasingly important as Indian cities face climate stress and resource constraints. Looking ahead, analysts expect the India REIT market to represent a far larger share of institutional real estate within the decade, potentially approaching one-third of the sector. Whether this growth translates into more inclusive and resilient cities will depend on planning frameworks, infrastructure readiness and how responsibly new asset classes are integrated into dense urban environments. The next phase of REIT expansion, many believe, will be measured not just in returns, but in how well it aligns capital with long-term urban needs.
