Over 300m sq ft of office space an acquisition opportunity for REITs: Report
A report by Equirus Securities suggests that Real Estate Investment Trusts (REITs) have a significant opportunity to acquire over 300 million square feet of Grade A office space in India. The sector has seen substantial growth in market capitalization and unitholder participation since 2021.
Why it matters
This indicates a maturing commercial real estate market in India, offering new investment vehicles and potential for institutional growth.
More than 300 million square feet of office space held by developers and high-net-worth individuals could provide a fresh acquisition opportunity for Real Estate Investment Trusts (REITs), as India’s organised office market continues to expand.According to an Equirus Securities report, India has around 854 million square feet of organised office stock, of which nearly 620 million square feet is held by developers and HNIs. About 307 million square feet of this is Grade A, non-strata office stock that could potentially be acquired by REITs.The report said the available inventory could allow REITs to acquire both stabilised assets that generate immediate income and assets nearing completion that can support future portfolio growth.
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