Embassy REIT Bullish On India's Office Mkt; Looks For Organic, Inorganic Growth To Meet Demand: CEO

Embassy Office Parks REIT is bullish on demand for workspaces and plans to acquire 10-12 million sq ft of area over the next 3-4 years to expand its portfolio and grow business, a top company official said.

Embassy REIT owns and operates a portfolio of over 52 million square feet of office spaces across Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai.

In an interview with PTI, Embassy REIT CEO Amit Shetty highlighted that demand for office spaces remains strong despite global uncertainties.

He noted that foreign firms are actively leasing premium office spaces to set up Global Capability Centres (GCCs) across major cities. The coworking segment is also performing well due to high demand for managed flexible workspaces.

To cater for this rising demand, Amit said the company is constructing 6.2 million sq ft of office spaces at a total cost of ₹3,500 crore.

That apart, the company is looking for inorganic growth as well.

"We are looking at acquiring in the top five-six cities of the country. We have a pipeline of about 10 to 12 million sq ft acquisitions from third party, as well as from our sponsor entity group that we are closely working with," Shetty said.

He said the company is evaluating these acquisition properties and hoped to conclude a few deals this fiscal.

The company has enough headroom to take debt to fund acquisitions, once any deal gets finalised, he added.

Recently, Embassy Office Parks REIT reported a 17% annual increase in net operating income (NOI) to ₹1,020 crore for the quarter ended June.

Its revenue from operations rose 17% annually to ₹1,241 crore in the first quarter of this fiscal.

The company declared a distribution of ₹598 crore, or ₹6.31 per unit, to unitholders for the April-June quarter of 2026-27 fiscal.

It leased 1.3 million sq ft of office space during the quarter ended June, and out of that, 0.7 million sq ft was fresh leasing.

"GCCs continued to anchor demand, accounting for 81% of quarterly leasing, while AI-related companies contributed 21% of new leasing. This reflects the growing depth and quality of India's office market, with companies shaping the AI-driven economy choosing our campuses as platforms for growth," Shetty said.

Embassy REIT is sponsored by Bengaluru-based real estate developer Embassy Group, which has two other listed entities - Embassy Developments and WeWork India.

In addition to office assets, Embassy REIT's portfolio includes strategic amenities such as five operational business hotels, two hotels under development, and a 100 MW solar park that supplies renewable energy to tenants.