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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
5 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.
Time of India
6 days ago
- Business
- Time of India
India's office REITs see strong growth
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The global capability centres (GCCs) have contributed to almost 40%–60% of total leasing demand of India's office asset REITs compare to 28%–29% share in overall office leasing over the last four quarters up to Q1 2025, suggesting institutionally owned assets are preferred by many multinational occupiers India's office REIT stocks outperformed the Bombay Stock Exchange (BSE) Realty Index as in the 12-month up to June 2025, all three office REIT stocks delivered more than 15% capital contrast, the BSE Index experienced a to Cushman & Wakefield 's comparisons of the five largest REIT markets in Asia - Japan, Singapore, the Chinese mainland, Hong Kong, China and India, India's and China's Real Estate Investment Trust (REIT) markets showed robust growth in 2024 and are expected to continue to attract strong investor interest this report revealed that the Chinese mainland REIT (C-REIT) market achieved a 85% increase in market value at the end of 2024, surpassing Hong Kong and becoming one of the region's top three REIT markets.'The unprecedented growth in the C-REIT market highlights its role as a critical driver of regional expansion, while India's performance emphasizes the growing strength of the country's institutional-grade real estate ,' said Catherine Chen, Director, Investor Client Intelligence & Insights, Asia Pacific at Cushman & the same period, India's REIT market demonstrated robust growth in the office sector, driven by strong leasing demand for institutional-grade office space. Meanwhile, mature markets such as Japan, Singapore and Hong Kong moved toward stabilization, underlining their long-term 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 sq ft, which accounted for close to a fifth of the gross leasing volume (GLV) across the top eight cities in the country.'Multinational companies, especially GCCs have driven record leasing activity, which now accounts for a significant share of the nation's Grade A office stock . There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs. All three office REITs in India achieved occupancy rates close to 90% at the end of Q1 2025,' said Somy Thomas, Executive Managing Director, Valuations and Co- Head, Capital Markets, India at Cushman & the REIT assets have managed to attract a considerable share of demand coming from global capability centers (GCCs), which is an important growth driver for India's office of June 2025, the Indian REIT market comprised three office REITs and one retail REIT, collectively managing an operational portfolio of over 105 million sq. ft. While the number of listed REITs remained constant over the past year, their combined portfolio grew by more than 12%,raising the institutional share to approximately 13% of India's total Grade A office from this, more than 23 million sq ft 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 nearly two years of underperformance, India's office REIT stocks outperformed the Bombay Stock Exchange (BSE) Realty Index significantly.A fourth office REIT in India is expected to make its listing debut by the end of the calendar year 2025. With 48 million sq ft of Pan-India Grade A office space (37 million sq ft operational and 11 million sq ft under development), Knowledge Realty Trust, which is backed by Blackstone and Sattva Developers is expected to become one of the largest real estate investment trusts listed in & Wakefield's data showed a total of 263 active REIT products in the Asia market as of December 31, 2024, with a combined market value of US$235.8 billion, reflecting a year-on-year decline of 6.5%. The contraction was primarily driven by declines in the U.S. dollar values of the Japan, Singapore and Hong Kong markets due to the widespread softening in REIT stock prices and unfavorableexchange rate the mature markets, Japanese REITs experienced significant gains in dividend yield, led by stock price moderation and asset performance improvements, particularly among hotel REITs, which benefited from inbound Singapore, positive total returns were observed across multiple property types in 2024, including data centres at 9.7%, and healthcare at 6.9%. Elsewhere in Asia, Thailand demonstrated robust performance with a 41% increase in market value, marking it as the second-highest growth market in the region. The Philippines, Malaysia and India reported increases of 37%, 21% and 13% respectively, supported by their favourable economic fundamentals and attractive real estate sectors.
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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.
