Indian Office REITs Projected to See Strong Growth Momentum

According to Visible Alpha consensus, Indian office REITs are projected to see much stronger revenue growth in 2024 and beyond, compared to U.S. office REITs. We look at the top three U.S. office REITs by revenue: Alexandria Real Estate Equities (NYSE: ARE), Boston Properties (NYSE: BXP), and Vornado Realty Trust (NYSE: VNO); and the top three Indian office REITs by revenue: Embassy Office Parks REIT (NSE: EMBASSY), Mindspace Business Parks REIT (NSE: MINDSPACE), and Brookfield India Real Estate Trust (NSE: BIRET) for comparison.

In absolute terms, U.S. office REITs generate much larger revenues. Indian office REITs, however, are projected to see much stronger revenue growth in the forecast period. As more companies ask employees to return to the office and global companies expand their operations in India, demand for office space in India is expected to be key in driving revenue growth for Indian office REITs. In 2024, while Alexandria Real Estate, Boston Properties, and Vornado Realty are estimated to see modest revenue growth of +8%, +1%, and -1% YoY. respectively, their Indian counterparts Embassy Office Parks, Mindspace, and Brookfield are expected to see revenue grow by +13%, +9%, and +34%, respectively. While revenue growth is expected to slow down across all six companies, Indian office REITs are estimated to see growth remain elevated compared to U.S. office REITs.