Indian REITs return a high of Rs 1,505 crores to the Unitholders in Q3 FY25.

According to information available from the Indian REITs Association (IRA), recent statistics reflect that four listed Real Estate Investment Trusts in India handed out a high record of more than Rs 1,505 crores to more than 2.6 lakh unitholders in Q3 FY25. Compared with the same quarter of the year ago, up by 17%, that at Rs 1,289 cr.

Of course, above these REIT growth leaders have come to Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT and Nexus Select Trust. According to an order made Sebi said, the REIT should disperse an amount to the level equivalent to 90 percent amongst unit holders about the tax payable for the relevant previous year.

Performance Breakup:

Of the four REITs, Embassy Office Parks REIT came out in first place because it had maximum growth of the DPU amount at Rs 5.9 per unit with overall distribution totaling Rs 559 crore amount and 13 percent growth per annum.

Mindspace Business Parks REIT distributed Rs 315 crore or Rs 5.32 per unit with a growth of 10.9% Y-o-Y. Nexus Select Trust was followed by Rs 332.7 crore or Rs 2.196 per unit with a growth of 10% Y-o-Y. Brookfield REIT declared Rs 4.9 per unit, a growth of 3% Y-o-Y.

Expanding REIT Market:

The Indian REIT market manages assets of around Rs 1.52 trillion, and the market capitalization stood at more than Rs 95,000 crore as of February 7. Of this, the REITs collectively own and operate over 126 million square feet of Grade A office and retail spaces across the country.

The industry experts seem to be very optimistic about the growth in this sector. Lokesh Manik, Senior Equity Research Analyst at Vallum Capital Advisors, feels that “The demand for office spaces remains strong, and as long as India’s GDP growth stays above 6%, commercial real estate will continue to thrive.”

Growing Interest in REITs:

The four REITs had paid out Rs 1,371 crore for the two quarters of FY25 and Rs 1,383 crore for the latest quarter. More than Rs 21,000 crore since the inception of REITs have been paid out.

However, India is still in the early stages of its own REIT market compared with global peers. As of today, the listed REITs represent just 13.7% of the country’s total listed real estate, much lower than the USA at 98.9% followed by Australia at 94.8% and the UK at 92.5%.

However, the sector is growing on a positive trajectory. Vestian report has mentioned that with a valuation of Rs 4.5 lakh crore, nearly 60% of India’s total Grade-A office space would qualify as REIT-worthy. Rating agency ICRA, in one of its reports, projects net office space absorption growth of 10-11% in FY25 across India’s top six cities followed by growth in FY26.

IT firms and GCCs as well as flexible workspace operators continue to expand. This way, the REIT market in India will increasingly play an important role in India’s commercial real estate landscape.