The REIT CHOICE

AS GCCs FUEL DEMAND FOR PREMIUM WORKSPACES AND MALLS CONTINUE TO ATTRACT FOOTFALLS, REITs ARE TURNING COMMERCIAL REAL ESTATE INTO A REWARDING INVESTMENT PROPOSITION THINK OF THE most iconic or prominent office parks and commercial hubs across Mumbai, Bengaluru, the National Capital Region (NCR), Hyderabad, Chennai, Ahmedabad or Kolkata, and chances are that these are run by one of the many real estate investment trusts (REITs).

- BY VENKATASUBRAMANIAN K.

THINK OF THE most iconic or prominent office parks and commercial hubs across Mumbai, Bengaluru, the National Capital Region (NCR), Hyderabad, Chennai, Ahmedabad or Kolkata, and chances are that these are run by one of the many real estate investment trusts (REITs).

REITs have emerged as key custodians of the country’s premium commercial real estate. Players such as Embassy Office, Knowledge Realty, Mindspace Business, Brookfield India and Bagmane Prime manage some of the most prestigious and sought-after commercial real estate assets that house leading companies and businesses in the top Indian cities. Nexus Select Trust, meanwhile, mostly runs mall spaces.

Together, India’s REITs command a gross asset value (GAV) of more than ₹3.12 lakh crore, reflecting the combined total market value of all properties and cash assets held under their management.

These REITs have been in the spotlight over the past year or so, with their robust showing in the markets after a three-four-year period of lull with low single-digit returns. The turnaround has been impressive, with four of the five listed REITs giving returns ranging between 13.9% and 16.2% in the last one year as of May 29, 2026 (from May 29, 2025 levels). And they have topped it by dividends, with yields ranging from 4% to 7%.

The combination of capital appreciation and attractive income has brought REITs firmly back into investors’ focus, making them one of the more compelling opportunities in the market today. This has been achieved in a period during which equity markets have been turbulent and mostly on a negative trajectory, thanks to wars, penal trade tariffs, energy supply and price disruptions.

The BSE Realty index declined by over 15%, the benchmark Nifty 50 Total Return Index (TRI) fell over 5% and the broader Nifty 500 TRI was almost unchanged in the one-year timeframe mentioned earlier. And their dividend yields have been much lower.