Ahmedabad’s commercial real estate market is growing, but the city continues to lag behind other major Indian cities in attracting institutional investment through Real Estate Investment Trusts (REITs).
According to the latest ASSOCHAM–Knight Frank India report, Building Viksit Bharat – Real Estate as a Catalyst for Growth, Ahmedabad has 43.8 million sq ft of office space, of which only 0.5 million sq ft is backed by REITs. This represents a REIT penetration of just around 1%, the lowest among India’s eight major office markets.
A REIT works somewhat like a mutual fund for real estate. Instead of directly purchasing properties, investors buy units of a REIT, which owns income-generating assets such as office buildings and malls. Rental income from these properties is distributed among investors.
The gap is significant compared with other major cities. Bengaluru has 67.6 million sq ft of REIT-backed office space, accounting for 27% of its total office stock. Hyderabad has a 20% penetration rate, followed by Mumbai at 14%, while Chennai and Kolkata stand at 10% each.Ahmedabad has performed better in the retail segment, with 0.9 million sq ft of operational retail assets backed by REITs.
This makes retail a more prominent institutional investment segment in the city than office space.Pranav Shah, a member of the advisory board of CREDAI Ahmedabad GIHED, said the mall segment has attracted stronger REIT interest because institutions consider it relatively safer and capable of generating steady returns.
“The city has witnessed good REIT investment in the mall segment as institutions are finding it safer and return-oriented. Therefore, going forward, we can see further REIT funds being pumped into mall retail,” Shah said.
At the national level, operational office REIT portfolios grew 74% year-on-year to 167 million sq ft in the first half of 2026, up from 95.8 million sq ft during the same period in 2025.
However, Ahmedabad has so far remained largely outside this rapid expansion in institutional real estate investment, particularly in the office segment.