India’s and China’s Real Estate Investment Trust (REIT) markets showed robust growth in 2024 and are expected to continue to attract strong investor interest this year, according to Cushman & Wakefield’s Asia REIT Market Insight 2024–25. The annual report provides in-depth analyses and comparisons of the five largest REIT markets in Asia: Japan, Singapore, the Chinese mainland, Hong Kong, China (“Hong Kong”); and India.
The report revealed that the Chinese mainland REIT (C-REIT) market achieved a remarkable 85% increase in market value at the end of 2024, surpassing Hong Kong and becoming one of the region’s top three REIT markets. In the same period, India’s REIT market demonstrated robust growth in the office sector, driven by strong leasing demand for institutional-grade office space. Meanwhile, mature markets such as Japan, Singapore and Hong Kong moved toward stabilization, underlining their long-term resilience.
The Indian REIT Market
The financial year 2024–2025 (ending March 2025) was a strong one for India’s office REITs. The three office REITs collectively garnered leasing volumes of more than 16 million sq ft, which accounted for close to a fifth of the gross leasing volume (GLV) across the top eight cities in the country. Interestingly, the REIT assets have managed to attract a considerable share of demand coming from global capability centers (GCCs), which is an important growth driver for India’s office markets.
As of June 2025, the Indian REIT market comprised three office REITs and one retail REIT, collectively managing an operational portfolio of over 105 million sq. ft. While the number of listed REITs remained constant over the past year, their combined portfolio grew by more than 12%, raising the institutional share to approximately 13% of India’s total Grade A office stock. Apart from this, more than 23 million sq ft of new office space is under construction or is planned by the existing office REITs, and it is expected this new supply to be added to the total REIT portfolio in the coming years.
After nearly two years of underperformance, India’s office REIT stocks outperformed the Bombay Stock Exchange (BSE) Realty Index significantly. During the 12-month period up to June 2025, all three office REIT stocks delivered more than 15% capital appreciation. In contrast, the BSE Index experienced a correction. The key driver has been the underlying strength of India’s office real estate market, triggered by heightened demand from GCCs, engineering and manufacturing, and BFSI firms. There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs.
Global capability centres drive leasing demand for India office REITs
India’s office asset REITs have attracted a considerable share of demand from global capability centres (GCCs), which is an important growth driver for India’s office markets. At a Pan-India level, GCCs have accounted for 28%–29% of gross leasing volume on average over the last four quarters up to Q1 2025. In contrast, office REIT landlords were able to achieve a much higher share, anywhere between 40%–60% of total leasing demand from GCC firms, rendering institutionally owned assets the preferred choice for many multinational occupiers.
A fourth office REIT in India is expected to make its listing debut by the end of the calendar year 2025. With 48 million sq ft of Pan-India Grade A office space (37 million sq ft operational and 11 million sq ft under development), Knowledge Realty Trust, which is backed by Blackstone and Sattva Developers is expected to become one of the largest real estate investment trusts listed in India.
Somy Thomas, Executive Managing Director, Valuations and Co- Head, Capital Markets, India at Cushman & Wakefield commented,
“India’s REIT market continues to carve a strong trajectory, with exceptional growth seen across the office sector. Multinational companies, especially GCCs have driven record leasing activity, which now accounts for a significant share of the nation's Grade A office stock. There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs. All three office REITs in India achieved occupancy rates close to 90% at the end of Q1 2025.”
Catherine Chen, Director, Investor Client Intelligence & Insights, Asia Pacific at Cushman & Wakefield said,
“The unprecedented growth in the C-REIT market highlights its role as a critical driver of regional expansion, while India’s performance emphasizes the growing strength of the country’s institutional-grade real estate. These markets continue to create new and exciting opportunities for investors targeting Asia.”
ASIA REIT Market
Cushman & Wakefield’s data showed a total of 263 active REIT products in the Asia market as of December 31, 2024, with a combined market value of US$235.8 billion, reflecting a year-on-year decline of 6.5%. The contraction was primarily driven by declines in the U.S. dollar values of the Japan, Singapore and Hong Kong markets due to the widespread softening in REIT stock prices and unfavorable exchange rate movements. Amid these declines, the Chinese mainland REIT market emerged as a bright spot, posting an impressive 85% year-on-year rise in market value, attributable to new REIT product issuances and strong investor demand for infrastructure-backed assets.
In the mature markets, Japanese REITs experienced significant gains in dividend yield, led by stock price moderation and asset performance improvements, particularly among hotel REITs, which benefited from inbound tourism. In Singapore, positive total returns were observed across multiple property types in 2024, including data centres at 9.7%, and healthcare at 6.9%. Elsewhere in Asia, Thailand demonstrated robust performance with a 41% increase in market value, marking it as the second-highest growth market in the region. The Philippines, Malaysia and India reported increases of 37%, 21% and 13% respectively, supported by their favourable economic fundamentals and attractive real estate sectors.
Total Market Value of Active REITs on Major Asia Exchanges (December 2024)
Source: Bloomberg database, compiled by Cushman & Wakefield Valuation & Advisory Services
Looking Ahead
The Asia REIT market is poised for continued evolution as it navigates the dual forces of mature market stabilization and emerging market expansion. “We expect the mature markets of Japan, Singapore and Hong Kong to focus on enhancing operational efficiencies while grappling with the challenges posed by global monetary policy shifts. On the other hand, emerging markets, particularly the Chinese mainland, India and Thailand are expected to continue to grow, bolstered by strong economic fundamentals and supportive regulatory frameworks”, noted Catherine Chen.
Cushman & Wakefield’s report also noted that data centre and hospitality REITs are expected to remain highly visible on investors’ radar, driven by AI advancements and recovery in the tourism sector respectively. Additionally, M&A activity is likely to pick up as players seek scale and diversification to better weather market fluctuations.