May 19: India’s listed office Real Estate Investment Trusts (REITs) are increasingly positioning their portfolios around artificial intelligence–resilient tenants and Global Capability Centre (GCC)-led demand, as the sector enters FY27 with strong leasing momentum and rising investor interest.
The country’s publicly listed office REITs—Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust (BIRET), and Knowledge Realty Trust (KRT)—have reported healthy growth in net operating income, occupancy levels, and distributions in FY26, supported by robust leasing activity from multinational GCCs.
The latest entrant, Bagmane Prime Office REIT, saw strong investor appetite, with its initial public offering subscribed nearly 25 times, marking one of the most heavily subscribed REIT listings in India to date.
Industry participants say GCCs continue to be a key demand driver for premium office spaces, helping REIT portfolios remain relatively insulated from technology cycles and evolving AI-related disruptions. This shift is encouraging landlords to focus on high-quality, future-ready assets with long-term leasing visibility.
According to Knowledge Realty Trust CEO Shirish Godbole, the REIT maintains a diversified and “AI-resilient” tenant base, with strong exposure to GCC clients that are less impacted by volatility in the traditional IT sector. He added that FY27 is expected to bring higher occupancy levels and stronger leasing activity, supported by both sponsor-driven asset additions and third-party acquisitions.
Market participants expect continued growth in revenues, net operating income, and investor distributions across the REIT sector, backed by a healthy pipeline of premium commercial assets and sustained institutional demand.
Overall, India’s office REIT market is entering the next phase of expansion, driven by global occupier demand, asset quality upgrades, and a structural shift toward large-scale GCC-led leasing.
