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New listings, asset additions to lift REITs’ GAV 35-40% by FY27: Crisil Ratings
Dec-26-2025

Amid asset additions and the listing of a new REIT, Crisil Ratings in its latest report has forecasted a rise of 35-40% in the gross asset value (GAV) of domestic real estate investment trusts (REITs) by the end of fiscal 2027 as compared with September 2025. It said standard annual rental escalations and improving occupancy will also support growth, noting that sustained growth in rental income, along with diversification and controlled leverage, will keep credit profiles stable.

This report is based on analysis of five listed REITs, with a total leasable area of 152 million square feet (msf) of commercial and retail space as of September 2025, as well as the new REIT likely to be listed in fiscal 2027. As per the report, asset additions have accompanied strong occupancies. The overall committed occupancy of REITs improved from 88.4% in September 2024 to 91.5% as of September 2025. This is expected to improve further to 92-93% by the end of fiscal 2027, driven by strong demand for office space from global capability centres, the BFSI sector and flexible workspace providers.

The report further stated that the anticipated increase in occupancy will be supported by the denotification of special economic zones for office space, as well as consumption growth driven by recent tax cuts, easing inflation and lower interest rates, which will benefit demand for retail spaces. REITs have maintained healthy profit (Ebitda) margin of about 70% over the past few years and the agency is expecting margin at a similar level this and next fiscal, thereby generating strong cash flows. According to the report, debt of REITs may increase this fiscal and the next, led by funding requirements for asset additions. However, continued equity raising for acquisitions by higher-leveraged REITs, consistent with past trends, will provide an offset.

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