India’s listed office REITs have had a fantastic FY25, proving to be high yielding, resilient and sustainable investment vehicles. Brookfield India REIT, Embassy Office Parks REIT and Mindspace Business Parks REIT which manage some of the largest Grade-A office portfolios in the country have seen record leasing, sharp rise in net operating income (NOI), distribution growth, occupancy level and high investor interest with clear signs of market growth and operational excellence.
In the post pandemic surge and return to office wave, Global Capability Centres (GCCs) and top MNC tenants played a key role in reviving India’s office leasing momentum. From green energy transitions to landmark acquisitions and rising asset values, FY25 was a inflection point for REITs as they moved from stability to growth mode. Let’s explore Indian REITs FY25 performance.
🏢 Macro Context: Record Leasing Spurs Market Rebound
India’s commercial real estate market rebounded in FY25 with historic intensity:
- 79 million sq. ft of gross office leasing in calendar year 2024, the highest on record (CBRE India)
- 18 million sq. ft leased in Q1 2025 (Jan–Mar) alone, setting a fast-paced tone for the year
- 35–40% of total leasing came from Global Capability Centres (GCCs), affirming India’s top spot as a global service delivery hub
Government policy support, SEZ denotification reforms, and increasing institutional investments reinforced this recovery. REITs responded with accelerated asset deployment, stronger tenant retention strategies, and new avenues of capital raising to harness market growth.
📊 Indian REITs FY25 Performance – Key Metrics
| Metric | Brookfield REIT | Embassy REIT | Mindspace REIT |
|---|---|---|---|
| Gross Leasing (msf) | 3.0 | 6.6 | 7.6 (Record high) |
| Committed Occupancy (%) | 88 (▲ 600bps YoY) | 91 by value | 93 |
| Net Operating Income (NOI) | 1,854 (▲ 37% YoY) | 3,283 (▲ 10% YoY) | 2,062 (▲ 8.9% YoY) |
| Distributions | 1,053.7 | 2,181 | 1,312 |
| Distributions Per Unit (INR) | 19.25/unit, ▲ 8.5% | 23.01/unit, ▲ 8% | 21.95/unit, ▲ 14.6% |
| Gross Asset Value | 38,000 (▲ 30% YoY) | >40,000 | *36,650 ▲ 14.6% |
Figures in INR Crore until specified
This consistent outperformance across key metrics demonstrates strong demand recovery and portfolio optimization.
🔍 REITs in Focus: Who Did What
🧱 Brookfield India REIT – Accelerated Growth + ESG Leadership
“Our fiscal 2025 has been a remarkable all-round performance, delivering strong leasing, double-digit same-store growth, higher distributions, and a marquee acquisition. Our INR 4,700 crore of capital issuance reflects investor confidence in our long-term strategic vision. With 2.0 million sq. ft. of ongoing conversions in our SEZ properties and a robust leasing pipeline, we are well-positioned for sustained growth over the next year”
– Alok Aggarwal, CEO, Brookfield REIT
Brookfield REIT led its peers in NOI growth, reflecting operational discipline and a smart acquisition-led growth model. Highlights include:
- NOI surged by 37% YoY, touching INR 1,854 Cr
- Issued new equity worth INR 4,700 crore through QIP and strategic stake sales, enhancing balance sheet flexibility
- Acquired a 50% stake in a 3.3 msf Delhi-NCR commercial asset from Bharti Enterprises
- ESG Achievements:
- 5-star GRESB rating (third consecutive year)
- Achieved 40% renewable energy transition across 15.4 msf
- Reduced 11,000 MT CO₂ annually through solar integration
Brookfield’s sharp capital allocation and tenant-focused sustainability moves signal its evolution into a leading ESG-compliant REIT in Asia.
🏙 Embassy REIT – Distribution King & Expansion Powerhouse
“We’re delighted to report another excellent year for Embassy REIT as we mark six years since our listing in April 2019. In FY25, we leased 6.6 million sq. ft., delivered 2.5 million sq. ft. of new development, and acquired a 5.0 million sq. ft. high-quality asset. Notably, we increased distributions by 8% and are pleased to guide to double-digit distribution growth in FY2026. Our business is in excellent shape, and our world-class office portfolio continues to see strong demand from leading companies across the globe”
– Ritwik Bhattacharjee, CEO, Embassy REIT
Embassy REIT maintained leadership in overall distribution payouts and large-scale asset additions. Key highlights:
- Annual NOI of INR 3,283 Cr – highest among Indian REITs
- Distributed INR 2,181 Cr (INR 23.01 per unit) in FY25, growing by 8% YoY
- Acquired a 5.0 msf premium Chennai business park, expanding its southern India footprint
- Delivered 2.5 msf of new office supply; development pipeline of 6.1 msf underway
- Refinanced INR 6,300 Cr of debt at sub-8% interest, improving leverage metrics
Embassy’s FY2026 guidance includes double-digit distribution growth (INR 24.5–26/unit) and a targeted occupancy rate of 93–94%.
🧯 Mindspace REIT – Leasing Leader with Asset Uplift
Mindspace emerged as the leasing volume leader, backed by rental growth in micro-markets and proactive SEZ strategy:
- Leased 7.6 msf, including conversions and new leases
- NAV grew 10%, driven by portfolio revaluation and new tenant inflows
- Converted 2.2 msf of SEZ to non-SEZ space; leased 1.2 msf of it already
- Focused on retaining top-tier clients, improving yields, and unlocking SEZ potential
“FY25 has been our best year since listing, with record annual gross leasing of 7.6 msf and a 39% YoY rise in quarterly distribution to INR 392.3 crore. Net Operating Income grew ~13% YoY to INR 539.8 crore, and committed occupancy increased to 93%. With 3.6 msf pre-leased, demand remains strong. Our NAV rose 10% due to higher rentals, acquisitions, and project completions. We remain optimistic, supported by high-quality assets, strong tenant ties, and strategic growth initiatives.”
– Ramesh Nair, CEO, Mindspace REIT
The REIT’s ability to stay agile with regulatory shifts and tap into tenant demand helped it maintain high portfolio utilization.
Emerging Trends & Outlook for FY2026
⬆️ What’s Driving the Surge?
- Return-to-office trends are strengthening, with global occupiers expanding in India
- SEZ denotification reforms are unlocking value in previously constrained zones
- Investor trust in REITs is increasing due to consistent distributions and transparency
- Growing appetite for ESG-compliant office assets, especially among MNC tenants
🔮 2026 Outlook: Focus on Scale, Yields, and Sustainability
| Focus Area | Outlook |
|---|---|
| Leasing | Strong GCC demand, new sectors like fintech and R&D expected to rise |
| NOI Growth | Expected double-digit YoY increase across all REITs |
| Distributions | Projected 8–10% YoY growth; potential upside from higher leasing spreads |
| Asset Expansions | Pipeline of 10+ msf across REITs; more M&A activity likely |
| ESG & Energy | Renewable integration, WELL certifications, and GRESB scores driving tenant preferences |
REITs are aligning strategies toward tenant-centric smart campuses, digital readiness, and climate-friendly infrastructure.
💼 India’s REIT Space
The Indian REITs are growing rapidly:
- Gross AUM of INR 1.52 lakh crore across listed REITs
- Market cap of INR 97,775 Cr as of May 2025
- Pipeline includes a new INR 7,000 Cr IPO from the Blackstone-Sattva Group
India offers over 400 msf of REIT-grade office stock, of which only a fraction is currently listed. This offers significant headroom for fresh issuances, diversifications into mixed-use and industrial REITs, and innovations in REIT-linked investment products.
With strong institutional participation, transparent governance, and global-grade tenant profiles, India’s REIT ecosystem is maturing into a vital capital markets segment.
Conclusion
Indian REITS FY25 Performance marked a strategic inflection point for India’s REITs. Not only did they deliver financial outperformance, but they also proved their adaptability, ESG alignment, and growth readiness. As global investors look for stable, inflation-hedged, and climate-conscious assets, Indian office REITs are emerging as a compelling destination.
Looking forward, expect more listings, deeper tenant engagement, stronger ESG disclosures, and wider investor base participation in FY2026. Indian REITs have moved from cautious optimism to confident acceleration.
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