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Time of India
a day ago
- Business
- Time of India
India Office REITs outperform Realty Index, attract global investors: Cushman & Wakefield study
Indian office REITs are showing strong growth. They are outperforming the real estate market. Investor interest is increasing. Global Capability Centres are driving leasing demand. REIT-owned properties are capturing a bigger share of the Grade A office market. A new office REIT, Knowledge Realty Trust, is expected to launch soon. India's REIT market is among Asia's fastest growing. Tired of too many ads? Remove Ads Global capability centres power leasing momentum Tired of too many ads? Remove Ads REITs capture bigger share of India's grade A office market New listings on the horizon India among Asia's fastest growing REIT markets India's Office REITs are fast emerging as a resilient wealth-creation avenue, outperforming the broader real estate market and drawing increasing investor to Cushman & Wakefield 's latest Asia REIT Market Insight 2024–25, Indian office REITs recorded over 15% capital appreciation in the past 12 months, surpassing the performance of the BSE Realty Index, which witnessed a correction during the same study highlighted that India and China remain the key growth engines for the Asia REIT market in 2024, even as mature markets like Japan, Singapore, and Hong Kong trend towards stabilization. 'India's REIT market continues to carve a strong trajectory, with exceptional growth seen across the office sector,' said Somy Thomas, Executive Managing Director, Valuations and Co-Head, Capital Markets, India at Cushman & Wakefield.A key driver behind this robust performance has been the surging leasing demand from Global Capability Centres ( GCCs ), which increasingly prefer institutional-grade office spaces offered by REITs. According to Cushman & Wakefield, GCCs accounted for 40%–60% of total leasing demand in REIT assets, compared to their overall average of 28–29% across India's office of June 2025, India's REIT landscape comprises three office REITs and one retail REIT, collectively managing over 105 million sq ft of operational space, with plans to add another 23 million sq ft under development. REIT-owned properties now account for approximately 13% of India's total Grade A office stock, a significant jump driven by demand from multinationals, BFSI firms, and engineering Chen, Director, Investor Client Intelligence & Insights, Asia Pacific at Cushman & Wakefield, noted, 'India's performance emphasizes the growing strength of the country's institutional-grade real estate. These markets continue to create new and exciting opportunities for investors targeting Asia.'The Indian REIT market is set to grow further, with Knowledge Realty Trust, backed by Blackstone and Sattva Developers, expected to launch India's fourth office REIT by the end of 2025. With 48 million sq ft of Grade A office space, it is poised to become one of the largest REITs in India upon mature markets like Japan, Singapore, and Hong Kong are focusing on operational efficiencies amidst global monetary challenges, India stands out among Asia's emerging markets. Alongside China and Thailand, India recorded a 13% growth in its REIT market during 2024, as per Cushman & Wakefield's data. This growth is underpinned by strong economic fundamentals, increasing foreign investor interest, and rising demand for premium office spaces.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Hans India
6 days ago
- Business
- Hans India
Office REITs outperform BSE Realty Index: Report
New Delhi: India's office real estate investment trust (REIT) markets outperformed the BSE Realty Index, recording over 15 per cent capital appreciation in last 12 months (up to June 2025), a report showed on Thursday. The key driver has been the underlying strength of India's office real estate market, triggered by heightened demand from global capability centres (GCCs), engineering and manufacturing, and BFSI firms. There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs, said Cushman & Wakefield's 'Asia REIT Market Insight 2024-25'. India's REIT markets showed robust growth in 2024 and are expected to continue to attract strong investor interest this 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 square feet, which accounted for close to a fifth of the gross leasing volume (GLV) across the top eight cities in the country. As of June 2025, the Indian REIT market comprised three office REITs and one retail REIT, collectively managing an operational portfolio of over 105 million the number of listed REITs remained constant over the past year, their combined portfolio grew by more than 12 per cent, raising the institutional share to approximately 13 per cent of India's total Grade A office stock. Apart from this, more than 23 million sft of new office space is under construction or is planned by the existing office REITs, and it is expected this new supply to be added to the total REIT portfolio in the coming years, said the office asset REITs have attracted a considerable share of demand from GCCs, which is an important growth driver for India's office markets. At a pan-India level, GCCs have accounted for 28 per cent–29 per cent of gross leasing volume on average over the last four quarters up to Q1 2025.'India's REIT market continues to carve a strong trajectory, with exceptional growth seen across the office sector. Multinational companies, especially GCCs have driven record leasing activity, which now accounts for a significant share of the nation's Grade A office stock,' said Somy Thomas, Executive Managing Director, Valuations and Co-Head, Capital Markets, India at Cushman & Wakefield.
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Business Standard
6 days ago
- Business
- Business Standard
Office Reits beat BSE Realty Index amid 'heightened demand': Report
Office real estate investment trust (Reit) stocks did better than the BSE Realty Index in the 12 months up to June 2025, overcoming the underperformance they had clocked for almost two years. All three office Reit stocks delivered more than 15 per cent capital appreciation, according to a report by Cushman & Wakefield. The BSE Index corrected in the same period. Reit stocks were helped by the strength of India's office real estate market, which has seen 'heightened demand' from global capability centres (GCCs), engineering and manufacturing, and financial sector firms. Customers preferring premium-grade assets has benefitted Reits, too, said the report. GCCs accounted for 28-29 per cent of nationwide gross leasing volume on average over the last four quarters up to Q1 2025. Office Reit landlords were able to achieve a much higher share —between 40 per cent to 60 per cent of total leasing demand from GCC firms — rendering institutionally owned assets the preferred choice for many multinational occupiers. There are three office Reits in India — Mindspace Business Parks Reit, Brookfield India Reit, and Embassy Office Parks Reit — and one retail Reit: Nexus Select Trust. This is the lowest number of active Reits among Asian peers, which together have a total of 263 active Reits with a market value of $235.8 billion. Compared to market leaders Japan and Singapore, which together make up $158 billion of market value as of December 2024 — cornering more than 60 per cent of the Asian market — India's share stands at 4.6 per cent with a market value of $11 billion. A fourth office Reit in India is expected to make its listing debut by this year's end, the report said, pointing to Knowledge Realty Trust, which is backed by Blackstone and Sattva Developers. With 48 million square feet (msf) of pan-India grade A office space (37 msf operational and 11 msf under development), Knowledge Realty Trust is expected to become one of the largest real estate investment trusts listed in India. 'India's Reit market continues to carve a strong trajectory, with exceptional growth seen across the office sector. Multinational companies, especially GCCs, have driven record leasing activity, which now accounts for a significant share of the nation's grade A office stock,' said Somy Thomas, executive managing director, valuations and co-head, capital markets, India, at Cushman & Wakefield. 'All three office Reits in India achieved occupancy rates close to 90 per cent at the end of Q1 2025.' FY25 was a strong year for India's office Reits, as they collectively garnered leasing volumes of more than 16 msf, which accounted for close to a fifth of the gross leasing volume (GLV) across the top eight cities in the country. India, along with China and Thailand, is expected to continue to grow, bolstered by strong economic fundamentals and supportive regulatory frameworks, analysts at the firm said, adding that mature markets of Japan, Singapore and Hong Kong are expected to focus on enhancing operational efficiencies while grappling with the challenges posed by global monetary policy shifts. Cushman & Wakefield's report noted that data centre and hospitality Reits are expected to remain highly visible on investors' radar, driven by AI advancements and recovery in the tourism sector, respectively. Additionally, M&A activity is likely to pick up as players seek scale and diversification to better weather market fluctuations.
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Business Standard
30-04-2025
- Business
- Business Standard
Macrotech, Godrej Properties gain up to 6%, Realty index up 4%; here's why
Real estate stocks rallied in Wednesday's intraday session, outperforming the benchmark indices, with Macrotech Developers Ltd and Godrej Properties Ltd among the top gainers amid the ongoing fourth-quarter earnings season. The key gauge for the realty stocks -- BSE Realty Index -- rose as much as 3.66 per cent to 6,989.6 on Wednesday, the best session for the index since April 15. The index pared gains to trade 3 per cent higher, compared to the 0.04 per cent advance in the benchmark Nifty50 index. The realty index has fallen 16 per cent so far this year, compared to the 3 per cent rise in the Nifty50 index. As of 12:20 PM, in the BSE Realty index Macrotech Developers led the gains on the BSE Realty index with a rise of 4.75 per cent, followed by Godrej Properties (up 4.14 per cent), Prestige Estates Projects Ltd (up 3.24 per cent), Phoenix Mills Ltd (up 2.36 per cent), and DLF Ltd (up 3.32 per cent). Other notable gainers included Sobha Ltd (up 1.99 per cent), Brigade Enterprises Ltd (up 0.92 per cent), and SignatureGlobal India Ltd (up 0.89 per cent). In the intraday session, Macrotech rallied as much as 5.8 per cent, Godrej Properties was up 6.5 per cent, while Prestige Estates and DLF were up 4.7 per cent and 3.95 per cent, respectively. The rally in the index came after multiple analysts remained bullish on Prestige Estates Projects after it received the approval for its key project in Indirapuram, NCR. According to reports, CLSA sees nearly 81 per cent upside for the stock while Morgan Stanley upgraded their ratings to 'Equal-Weight' with a target price of ₹1,370 per share. Other realty stocks in focus Macrotech Developers (Lodha Group) reported a consolidated profit of ₹921.7 crore for the fourth quarter of the financial year 2025 (Q4 FY25), up 38.5 per cent year-on-year (Y-o-Y). The company's revenue from operations in Q4 FY25 stood at ₹4,224.3 crore, a 5.12 per cent rise Y-o-Y, falling short of the Bloomberg analysts' poll estimate of ₹4,414 crore. Total expenses during the quarter were ₹3,233.1 crore, only 0.9 per cent higher than the year-ago period, primarily due to the cost of projects. Prestige Estates Projects is targeting ₹12,000 crore revenue from a 62.5-acre township at Ghaziabad, marking its entry into the Delhi-NCR growing residential market. Prestige Estates is already developing a commercial project at Delhi's Aerocity. In a regulatory filing on Tuesday, the company announced its entry into the National Capital Region (NCR) residential market with the launch of the first phase of 'The Prestige City, Indirapuram'. The real estate company extended a corporate guarantee of up to ₹750 crore to its subsidiary. Godrej Properties reported a 7 per cent rise in sales bookings to a record ₹10,163 crore in the fourth quarter of the previous fiscal, driven by strong demand for its housing projects. For the full financial year 2024–25, sales bookings surged 31 per cent to ₹29,444 crore. With bookings nearing ₹30,000 crore, the company is poised to become the largest listed real estate firm by sales bookings for the year.
