Bengaluru’s Office REIT Stock Surges 161% YoY;City Leads Major Markets at 27% Penetration: ASSOCHAM-Knight Frank India

Bengaluru accounts for 67.6 mn sq ft of REIT-backed office stock, the highest among major markets

 Bengaluru, September 16, 2026: According to the latest ASSOCHAM-Knight Frank India report, Building Viksit Bharat – Real Estate as a Catalyst for Growth, Bengaluru has emerged as the leading major office market in terms of REIT penetration, with REIT-owned assets accounting for 27% of its operational office stock. The city has 254.0 mn sq ft of operational office stock, of which 67.6 mn sq ft is held by REITs, the highest among the major markets analysed. Bengaluru’s office REIT stock has increased by 161% from 25.9 mn sq ft in June 2025 to 67.6 mn sq ft as of June 2026, reflecting a significant expansion in institutional ownership over the year.

Bengaluru’s strong institutionalisation is supported by the depth of its office market, with Embassy REIT accounting for 27.9 mn sq ft of REIT stock. The city’s established technology and corporate occupier ecosystem has supported the development of a sizeable institutional-grade office portfolio.

The institutional real estate landscape extends beyond its strong office REIT presence, with the city also recording 1.7 mn sq ft of operational retail REIT assets as of June 2026. The combination of a deep office market, significant REIT participation and a growing presence across asset classes underscores Bengaluru’s position as a mature institutional real estate market, with continued scope for REIT-led growth as the market evolves.

 Viral Desai, International Partner, Senior Executive Director, Occupier Strategy Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India, said, “Bengaluru continues to demonstrate the depth and maturity of India’s institutional real estate market, with REITs accounting for 27% of its operational office stock. The city’s sizeable retail REIT presence further reflects the depth of institutional participation across asset classes. While Bengaluru has established a strong REIT ecosystem, the substantial quantum of office stock outside REIT ownership indicates continued headroom for institutionalisation as the market evolves.”

The broader real estate market is similarly transitioning from volume-led growth towards value, institutional capital and specialised asset ecosystems. Residential gross sales value more than doubled from INR 3,525 bn in 2021 to INR 7,343 bn in 2025, while office transactions grew at a 7% CAGR between 2015 and 2025, outpacing completions across eight Indian markets. Real estate attracted USD 59.8 bn in cumulative PE investment between 2015 and H1 2026, with office accounting for 46%.

This institutionalisation is also extending to newer asset classes, with warehousing InvITs now holding around 32.2 mn sq ft of operational assets, alongside a further 12 mn sq ft under construction or in the pipeline.

REIT Coverage Analysis: Penetration (Operational Area in mn sq ft)

Source: Knight Frank Research