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• BSE Index Services has launched India’s first dedicated REIT and Commercial Real Estate Index, offering a benchmark for listed REITs and commercial real estate companies.
• The new index is expected to support the launch of ETFs, index funds and other passive investment products linked to the commercial real estate sector.
• It includes listed REITs and companies with significant commercial real estate exposure while capping individual stock weight at 20 per cent to ensure diversification.
• The launch comes as India's REIT market continues to expand, backed by rising institutional investments and growing investor interest in income-generating commercial assets.
BSE Index Services, a wholly owned subsidiary of the Bombay Stock Exchange (BSE), has launched the BSE REITs and Commercial Real Estate Index, becoming the first stock exchange in India to introduce a benchmark dedicated to listed Real Estate Investment Trusts (REITs) and commercial real estate-focused companies. The index has been developed to help investors track the performance of India's commercial real estate sector while supporting the growth of passive investment products such as exchange-traded funds (ETFs) and index funds.
The newly launched index combines listed REITs with companies that derive a significant portion of their revenue from commercial real estate assets and rental income. It includes businesses with exposure to office parks, retail properties and other leased commercial assets, giving investors diversified access to India's income-generating real estate market through a single benchmark.
To maintain balanced representation, BSE has capped the weight of each constituent at 20 per cent. The index has been launched with a base value of 1,000 and September 2022 as the base date. It will undergo semi-annual reconstitution in March and September to ensure that its constituents continue to reflect the evolving commercial real estate market.
Ashutosh Singh, Managing Director and Chief Executive Officer of BSE Index Services, said the benchmark provides focused exposure to India's yield-generating real estate ecosystem by combining listed REITs with companies that own sizeable commercial real estate assets and generate rental income. He added that the 20 per cent cap on individual constituents would help maintain diversification, making the index suitable for investable products and institutional investment strategies.
According to BSE, the index has been designed to serve as the underlying benchmark for ETFs, index funds, mutual fund schemes, portfolio management services (PMS) and other passive investment products. Besides helping fund managers launch new investment products, it is also expected to provide institutional investors with a standard benchmark to evaluate the performance of commercial real estate investments.
The launch comes at a time when India's REIT market is witnessing steady growth. The country currently has four listed REITs backed by premium office and retail assets across major cities, while several developers have expressed interest in monetising commercial property portfolios through future REIT listings. Over the past few years, REITs have also emerged as an investment avenue for investors seeking regular distribution income and exposure to high-quality commercial assets without directly owning property.
The development also follows strong investment activity in the sector. According to JLL, institutional investments in Indian real estate reached USD 4.3 billion during the first half of 2026, marking a 23 per cent year-on-year increase. Domestic investors accounted for a record 64 per cent share of total institutional investments during the period, reflecting growing confidence in India's commercial real estate market and the increasing role of domestic capital.
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