India commercial real estate market shows strong growth driven by REITs and GCCs

India's commercial real estate market is experiencing significant growth, driven by high demand for institutional-grade workspaces and the expansion of Global Capability Centres (GCCs). According to reports from Equirus Securities, GCCs accounted for a record 45 per cent of gross office leasing in the first half of 2026, with Bengaluru leading this demand.

This demand, coupled with limited new office supply, has pushed average office vacancy rates to a multi-year low of 15 per cent. The supply-demand gap presents a major opportunity for Real Estate Investment Trusts (REITs). An Equirus report indicates that over 300 million square feet of Grade A office space held by developers is currently available for REIT acquisition.

REITs in India have already expanded their footprint significantly, with office stock under their management rising from 71.8 million square feet in 2021 to approximately 163 million square feet in the first quarter of 2026. Under the Securities and Exchange Board of India framework, these trusts are required to distribute at least 90 per cent of their net distributable cash flows to unitholders, offering investors a way to participate in commercial property income without direct ownership.