Ajmera Realty Plans 2 Million Sq Ft Mumbai Rental Portfolio With Longer-Term REIT Ambition

Ajmera Realty & Infra (India) plans to build at least 2 million sq ft of rental assets in Mumbai over the next five to eight years, marking a longer-term push towards recurring rental income alongside its predominantly residential development business.

The company eventually wants to create a portfolio of rent-yielding assets that could potentially support a REIT structure, director-corporate affairs Dhaval Ajmera told ETRealty.

The distinction is important.

Ajmera does not currently have a 2 million sq ft rental portfolio. The company says its rental income is presently negligible, while the 2 million sq ft figure represents a future target.

Nor has Ajmera announced the creation, listing or timetable of a REIT.

Instead, the strategy points towards a gradual shift in its business mix, with commercial and rental assets potentially becoming more important alongside residential project sales.

Ajmera Targets 2 Million Sq Ft of Mumbai Rental Assets

Ajmera's longer-term objective is to create at least 2 million sq ft of rental assets in Mumbai over five to eight years.

According to Dhaval Ajmera, rental income is currently negligible.

That makes the proposed portfolio a meaningful strategic change rather than an extension of an already large rental business.

Ajmera's overall development portfolio will remain predominantly residential, but the company expects commercial development to receive greater attention over the coming quarters.

Some of its larger upcoming launches are in the commercial segment.

Could Ajmera Realty Eventually Create a REIT?

Ajmera says the eventual objective is to create a rent-yielding portfolio that could potentially support a REIT structure.

That should not be interpreted as confirmation that an Ajmera REIT is being launched.

A future REIT would require a sufficiently mature portfolio of income-producing assets and would depend on asset quality, leasing, occupancy, rental cash flows, regulatory requirements and capital-market considerations.

For now, the relevant development is the company's intention to create the underlying rental portfolio.

The REIT is a potential future route rather than a committed transaction.

Why Build Rental Assets Instead of Selling Everything?

Residential developers typically generate a substantial portion of cash flow by developing and selling homes.

Rental commercial assets operate differently.

A completed and leased office or other income-producing property can generate recurring rent instead of a one-time development sale.

That can potentially give a developer two different cash-flow engines:

development sales

and

recurring rental income.

Ajmera's proposed strategy therefore represents more than another construction target.

It could gradually change the composition of the company's property portfolio.

Ajmera Remains Predominantly Residential

The shift should not be overstated.

Ajmera says its overall portfolio will continue to remain residential-heavy.

The company has focused largely on residential development over recent years.

Commercial development is expected to receive more attention over the coming quarters because some larger launches are planned in that segment.

This means the 2 million sq ft rental strategy should be viewed as a gradual diversification rather than an immediate transformation into a commercial landlord.

₹2,200 Crore FY27 Pre-Sales Target

Ajmera is targeting ₹2,200 crore of pre-sales in FY27.

The company expects upcoming launches to contribute to that target, including a boutique office project planned in Mumbai once approvals are received.

Ajmera had originally planned around four to five launches during FY27.

One had been completed when Dhaval Ajmera spoke to ETRealty, with another three launches expected in subsequent quarters.

The ₹2,200 crore figure is company guidance and should not be treated as achieved sales.

More Than ₹1,000 Crore Investment Planned

Ajmera expects to invest more than ₹1,000 crore over the next three to four years across existing projects and upcoming launches.

This capital is associated with the development cycles of those projects.

It should not be confused with the 2 million sq ft rental-portfolio target.

The company has not disclosed in the reviewed source how much of the more than ₹1,000 crore investment will specifically be allocated to rental assets.

That distinction matters when assessing how quickly the rental strategy could develop.

Existing Project Portfolio Is Around ₹6,500 Crore

Ajmera says its current portfolio includes approximately ₹6,500 crore of projects expected over the next four to five years.

It also wants to add approximately ₹1,500 crore to ₹2,000 crore of projects to the portfolio.

Separately, the company said it targets approximately ₹1,500 crore to ₹2,000 crore of new project acquisitions on a year-on-year basis.

These are pipeline and business-development ambitions.

They are not equivalent to current revenue or completed development.

Commercial Development Is Becoming More Important

One of the most significant aspects of Ajmera's strategy is its planned commercial expansion.

The company expects to launch a boutique office project in Mumbai once approvals are received.

Commercial development is important to the rental strategy because income-producing offices can potentially become part of a recurring-income portfolio rather than being sold entirely after development.

However, the reviewed evidence does not identify which future Ajmera assets will ultimately be retained for rental income.

It also does not provide a project-by-project composition of the proposed 2 million sq ft rental portfolio.

Why Mumbai Matters for the Rental Strategy

Ajmera's proposed rental portfolio is focused on Mumbai.

That gives the strategy exposure to one of India's largest and most expensive real estate markets.

But Mumbai is not a single commercial property market.

Rental performance can vary substantially by micro-market, asset quality, building age, connectivity, tenant profile and competing supply.

The economic performance of Ajmera's eventual rental portfolio will therefore depend on the individual assets it develops and retains.

A 2 million sq ft target alone does not establish future rental income.

Bengaluru Expansion Continues

Ajmera also plans to continue development in Bengaluru.

The company has been developing and launching approximately 400,000 to 500,000 sq ft annually in the city and intends to maintain that pace.

It is considering approximately two to three Bengaluru project launches over the next six to eight months.

According to Dhaval Ajmera, some could use joint-development structures while others could be outright developments, although the structures were still being finalised.

This activity is separate from the proposed 2 million sq ft Mumbai rental portfolio.

Deliveries Are Expected to Increase Through FY28

Ajmera expects to deliver approximately 300,000 to 400,000 sq ft during FY27.

By FY28, cumulative deliveries are expected to reach approximately 700,000 to 800,000 sq ft, according to the company.

These delivery expectations relate to its broader project portfolio.

They should not be interpreted as delivery targets for the proposed rental portfolio unless the company specifically identifies them as such.

Construction Costs Remain a Pressure

Ajmera said construction costs increased approximately 18% to 20% during the period of maximum disruption.

On a normalised basis, incremental costs are approximately 5% to 10%, including supply-chain effects.

The company expects approximately 5% to 8% incremental price appreciation, largely reflecting input-cost inflation, while maintaining that its priority is sustaining sales volumes.

These are company observations and expectations rather than uniform Mumbai market measures.

Ajmera Says Current Debt Is ₹600 Crore to ₹700 Crore

Ajmera reported current debt of approximately ₹600 crore to ₹700 crore, which it described as largely project-linked funding.

The company also said approximately ₹500 crore to ₹600 crore of earlier balance-sheet debt had been completely repaid.

Ajmera expects future borrowing to remain linked to individual projects and said it was not currently looking to raise capital at the corporate level.

This matters because developing and retaining rental properties can require a different capital profile from building residential projects for sale.

Rental assets generally require capital to remain invested until the properties are completed, leased and generating income.

A Rental Portfolio Changes the Capital Equation

A developer that sells a project can recycle capital after collections and completion.

A developer that retains an asset for rent keeps capital tied to the property in exchange for potential recurring cash flows.

That creates a strategic trade-off.

Ajmera could gain:

• recurring rental income;
• diversification from residential sales;
• exposure to long-duration commercial assets; and
• a potential future pool of REIT-suitable assets.

But it would also need to manage:

• development capital;
• leasing risk;
• occupancy;
• tenant concentration;
• financing;
• operating costs; and
• the time required for new assets to stabilise.

The reviewed evidence does not provide enough information to quantify those future economics.

What Would Ajmera Need Before a REIT Becomes Relevant?

The first requirement is a meaningful portfolio of completed, income-producing assets.

The proposed 2 million sq ft portfolio would then need to demonstrate leasing and cash-flow characteristics capable of supporting an investment vehicle.

Important indicators would include:

• completed rental area;
• occupancy;
• contracted rents;
• tenant quality;
• lease duration;
• rental growth;
• operating income;
• debt;
• asset valuations; and
• concentration by property and tenant.

Ajmera has not disclosed these metrics for a future 2 million sq ft portfolio because the portfolio has not yet been built.

That makes any attempt to estimate a future REIT valuation premature.

India's REIT Market Shows Why Rental Scale Can Matter

India's listed REIT market provides a broader example of how large income-producing real estate portfolios can be accessed through public markets.

Vantage previously reported that India's six listed REITs distributed ₹3,136 crore to more than 4.85 lakh unitholders in Q1 FY27.

Together, those REITs managed more than 214 million sq ft of Grade A office and retail space.

Ajmera's potential future REIT strategy is much earlier in its development.

The comparison therefore illustrates the income-asset model, not the future scale or valuation of an Ajmera vehicle.

What Does Ajmera's Rental Strategy Mean for Investors?

For shareholders and real estate investors, the key question is whether Ajmera can build recurring rental income without weakening its residential growth engine or stretching its balance sheet.

The company currently says rental income is negligible.

That provides a clear baseline.

Over the coming years, investors can monitor whether:

• commercial projects are launched;
• Ajmera retains assets rather than sells them;
• rental space becomes operational;
• tenants are signed;
• rental income becomes material; and
• the company provides more detail on a potential REIT pathway.

Until then, the 2 million sq ft target remains a strategic ambition.

The Real Story Is a Shift From Selling Space to Owning Income

Ajmera's 2 million sq ft target matters because it suggests a potential evolution in the company's business model.

The developer expects to remain predominantly residential.

But it also wants to create a meaningful Mumbai rental portfolio and potentially establish a pool of rent-yielding assets capable of supporting a REIT structure in the longer term.

That journey will take years.

The key milestones are not the 2 million sq ft target alone.

They are:

construction,

completion,

leasing,

occupancy,

rental income,

and eventually

a portfolio large and stable enough to make a REIT structure economically relevant.

For now, Ajmera has outlined the destination.

The next five to eight years will determine how much of that strategy becomes operating real estate.

Frequently Asked Questions

How large a rental portfolio is Ajmera Realty planning in Mumbai?

Ajmera Realty says it would like to build at least 2 million sq ft of rental assets in Mumbai over the next five to eight years.

Does Ajmera Realty already own 2 million sq ft of rental assets?

No. The 2 million sq ft figure is a future target. The company says its current rental income is negligible.

Is Ajmera Realty launching a REIT?

No REIT launch was announced in the reviewed evidence. Ajmera says its longer-term objective is to create a rent-yielding portfolio that could potentially support a REIT structure.

What is Ajmera Realty's FY27 pre-sales target?

The company is targeting ₹2,200 crore of pre-sales in FY27. This is company guidance, not achieved pre-sales.

How much does Ajmera plan to invest?

Ajmera expects to invest more than ₹1,000 crore over the next three to four years across existing and upcoming projects. The reviewed evidence does not disclose how much will specifically fund rental assets.

What is Ajmera Realty's current project portfolio?

The company describes its current portfolio as approximately ₹6,500 crore of projects expected to be developed over the next four to five years.

Will Ajmera stop focusing on residential real estate?

No. Ajmera says its portfolio will continue to remain predominantly residential, although commercial development is expected to receive greater focus.

How much debt does Ajmera Realty currently have?

Dhaval Ajmera told ETRealty that current debt was approximately ₹600 crore to ₹700 crore and was largely project-linked funding.

Related Vantage Coverage

Click on article title to view article.

“Six listed Indian REITs distribute Rs 3,136 crore to investors in Q1 FY27” published on 17 August 2026 in Vantage-Radar

Sources

Click on article title to view article.

“Ajmera Realty looks to create two million sq ft of rental portfolio in Mumbai over next 5-8 years” published on 2 October 2026 in ETRealty

Evidence Caveats

• The 2 million sq ft rental portfolio is a five to eight-year company ambition, not an existing portfolio.
• Ajmera says rental income is currently negligible.
• The company has not announced the launch of a REIT. A potential REIT structure is a longer-term objective.
• ₹2,200 crore is FY27 pre-sales guidance, not achieved pre-sales.
• More than ₹1,000 crore is planned investment across existing and upcoming projects over three to four years. The amount allocated specifically to rental assets is unavailable.
• Approximately ₹6,500 crore refers to Ajmera's stated project portfolio, not current revenue.
• Future rental income, occupancy, NOI, rental yield, asset valuations and potential REIT valuation are unavailable and have not been estimated.
• Delivery guidance and Bengaluru launch plans relate to the wider development business and should not be treated as milestones for the Mumbai rental portfolio.