Hyderabad Records Second-Highest REIT Penetration Among Major Office Markets

Hyderabad: Hyderabad is emerging as one of India’s most institutionalised office real estate markets, with 20% of its operational office stock now backed by Real Estate Investment Trusts (REITs), according to an ASSOCHAM–Knight Frank India report.

As of June 2026, Hyderabad had around 129.1 million sq ft of operational office space, of which 26.2 million sq ft was held through REIT-backed assets. The city’s REIT-backed office stock more than doubled from 12.4 million sq ft in June 2025, representing a 111% year-on-year increase.

Bengaluru leads the major office markets with 67.6 million sq ft of REIT-backed space, equivalent to 27% of its office inventory. Hyderabad follows at 20%, while Mumbai stands at 14%.

The growth highlights increasing institutional investment in Hyderabad’s commercial property sector, supported by established office hubs such as HITEC City and demand from large corporate occupiers and Global Capability Centres (GCCs).

At the national level, India’s operational office REIT portfolio expanded 74% year-on-year to 167 million sq ft in H1 2026, from 95.8 million sq ft a year earlier. The portfolio represents about 16% of the country’s 1.05 billion sq ft office stock.

The rising REIT presence indicates the growing role of institutional capital in India’s commercial real estate market and could further support the development of professionally managed, income-generating office assets in Hyderabad.

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