Indian REIT market shows resilience and robust growth: ICRA Analytics

The Indian Real Estate Investment Trust (REIT) market is on a growth trajectory, marked by expanding portfolios, strong occupancy rates, and healthy Weighted Average Lease Expiry (WALE) levels, according to ICRA Analytics. These trends signal solid fundamentals and growing investor confidence in the sector.

REITs allow both individual and institutional investors to gain exposure to real estate without directly owning properties. Experts say the sector’s growth is underpinned by robust fundamentals, rapid urbanization, sustained corporate leasing demand, and supportive regulations. Rising investor interest in yield-generating assets is driving strong growth in REIT volumes.

Powered by Infre360, ICRA Analytics compared three leading office REITs, Brookfield India REIT, Embassy REIT, and Mindspace Business Parks REIT, across total leasable area, WALE, and occupancy levels.

Portfolio Expansion Driving Growth

The past four years have seen significant portfolio growth. Brookfield India REIT expanded its total leasable area from 18.6 million sq. ft. in FY2022 to 29.0 million sq. ft. in FY2025, driven by strategic acquisitions and asset development. Embassy REIT continues to dominate with over 51 million sq. ft. of premium office space, while Mindspace Business Parks REIT steadily increased its footprint from 31.8 million sq. ft. to 37.1 million sq. ft., maintaining a strong presence across multiple metro cities.

Long-Term Stability Through WALE

Long-term leases remain a key strength for Indian REITs. Embassy REIT leads with a WALE of 8.4 years in FY2025, highlighting tenant stickiness and stable cash flows. Brookfield India REIT maintains a solid 7-year WALE, supported by large corporate occupiers, while Mindspace REIT consistently records WALE between 6.9–7.4 years, reflecting effective lease renewals and portfolio resilience.

High Occupancy Rates Reflect Market Strength

Occupancy rates continue to be robust across Indian REITs. Mindspace REIT leads in FY2025 with 91.2% occupancy, reflecting strong tenant retention and leasing demand. Embassy REIT maintains a steady 85–87% occupancy, backed by a diversified Fortune 500 tenant base, while Brookfield India REIT records 88%, indicating improving demand momentum.

“These high occupancy levels reaffirm the strength of India’s Grade-A office market and provide long-term income visibility for investors. The growth in REITs underscores renewed institutional and retail investor appetite for commercial real estate-backed securities,” said Madhubani Sengupta, Head of Knowledge Services, ICRA Analytics. “Indian REITs remain a compelling, income-generating asset class for both institutional and retail investors going forward.”

With expanding portfolios, stable leases, and strong occupancy rates, the Indian REIT sector is poised for continued growth, offering investors a reliable avenue for long-term returns.