Mindspace Business Parks REIT has reported strong operational performance, with an occupancy rate of approximately 94% in the last announced quarter. The REIT’s current portfolio comprises 30 million sq ft of completed office space, with an additional 7-8 million sq ft under construction. These new projects are expected to be completed over the next two to four years, taking the total planned portfolio to around 38 million sq ft.
The company maintains a conservative loan-to-value (LTV) ratio of 25-26%, remaining comfortable up to 35% before considering any capital raise. Additionally, Mindspace REIT has consistently achieved a robust 20% re-leasing spread across its properties, reflecting strong rental growth and tenant retention.
In an exclusive interview with ETRealty, Preeti Chheda, CFO of Mindspace REIT, highlighted the REIT’s expansion strategy and evolving portfolio dynamics. According to her, the primary demand for office space continues to come from Global Capability Centers (GCCs) and domestic companies. Currently, GCCs account for almost 50% of the REIT’s portfolio, and domestic tenants now represent over 25% of leasing, up from 20% in 2020, reflecting a steady shift driven by sectors like BFSI, manufacturing, and government initiatives under the Make in India program.
CFO Chheda noted that despite global uncertainties, India remains an attractive destination for office demand, particularly for GCCs seeking cost efficiency. The first half of 2025 saw the highest office space absorption in five years, underscoring sustained demand.
The REIT allocates approximately 6% of its portfolio to flexible workspaces, while prioritizing conventional office models to maintain stability and predictability in occupancy. Mindspace REIT pursues growth via organic and inorganic routes, with ongoing construction of 7-8 million sq ft and recent acquisitions in Hyderabad adding nearly 2.6 million sq ft to its portfolio.
Financially, the REIT continues to maintain healthy metrics, including a distribution yield of 6-8%, robust re-leasing spreads of 20%, and steadily increasing rental rates across key markets such as Hyderabad, Pune, Chennai, and Airoli. Chheda emphasized that infrastructure challenges exist but also create opportunities in well-serviced pockets.
The Real Estate Investment Trust (REIT) market in India has witnessed steady growth since its first listing in 2019, reaching a market capitalization of approximately $18 billion as of August 2025. With three additional REITs expected to launch over the next few years, India’s REIT market is projected to surpass $25 billion in market capitalization by 2030, according to a report by CrEDAI and ANAROCK.
Although REIT guidelines were introduced in 2014, the first listing only came five years later, and the Indian REIT market still represents just 20% of institutional real estate—far below levels seen in the US (96%) and even regional peers such as Singapore (55%) and Japan (51%). The report attributes this limited penetration primarily to the concentration of Indian REITs in Grade A commercial office assets, which provide scale, transparency, and stable cash flows.
Mindspace REIT plans to maintain focus on office assets, with selective expansion in existing cities and potential new markets like Bengaluru and NCR, provided scale economics are met. The company also continues to explore regulatory and policy support, including inclusion in Indian indices, increased capital inflows from institutional investors, and more favorable bank lending structures for REITs.
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