Green debt has become a meaningful component of REIT funding strategies in India, with outstanding green borrowings witnessing strong growth over FY2022-FY2026. Despite a substantial increase in overall debt levels, green debt penetration improved from 6% to 12%, indicating an accelerating shift towards sustainable financing instruments. ICRA expects the share of green debt to increase to 15-17% over the next three years.

Exhibit : Occupancy and weighted average lease expiry (WALE) for REITs during FY2021 – FY2026

Source: ICRA Research, Investor Reports; Bagmane Prime Office REIT was listed on May 14, 2026, and had a committed occupancy of 99% as of December 2025