India’s Real Estate Investment Trust (REIT) market is on an impressive growth trajectory and could surpass $25 billion in market capitalization by 2030, according to the latest CREDAI–Anarock report. Despite being relatively new compared to global peers, India’s REIT sector is rapidly evolving beyond its current focus on Grade A office spaces into new asset classes like logistics, retail, warehousing, and data centres—a shift that is expected to attract more institutional investors.
Also Read: CREDAI Assures Homebuyers: GST Rate Cuts to Lower Property Costs, Especially in Smaller Cities
A Late Start, But a Strong Run
Although India introduced REIT guidelines in 2014, the first listing happened only in 2019. Since then, the sector has expanded steadily, touching $18 billion in market capitalization as of August 2025.
Currently, REITs in India represent only 20% of institutional real estate—much lower than the USA (96%), Singapore (55%), or Japan (51%). This relatively small penetration is because most Indian REITs are concentrated in commercial office assets, which offer transparency, scale, and reliable rental yields.
Also Read: Housing Sales Likely to Dip in FY2026 as Affordability Concerns Mount, Says ICRA
Market Leaders and City-Wise Distribution
At present, India has three listed REITs—Embassy Office Parks, Mindspace Business Parks, and Brookfield India & Knowledge Realty. Together, they account for about 166 million sq. ft., or 32% of the 520 million sq. ft. of REIT-worthy office stock across the top seven cities.
- Bengaluru leads with 63.6% of listed stock.
- Hyderabad follows with 30.6%.
- Mumbai accounts for 29.4%.
Southern cities, particularly Bengaluru, Hyderabad, and Chennai, collectively dominate with over 313 million sq. ft. of stock.
Why Investors Are Taking Notice
Indian REITs currently offer distribution yields of 6–7%, which are significantly more attractive than in many mature markets. These yields, combined with rental escalations and capital appreciation potential, make them competitive with fixed-income instruments but with greater upside.
According to Shobhit Agarwal, CEO of ANAROCK Capital, Indian REITs “are late to the party, but now lead the dance,” highlighting their ability to outperform global peers in yield potential.
Also Read: What Is GST on Under‑Construction Property in 2025?
The Road Ahead: Expanding Beyond Offices
The CREDAI–Anarock report, Indian REITs: A Gateway to Institutional Real Estate, unveiled at CREDAI NATCON 2025 in Singapore, forecasts that India’s REIT penetration could reach 25–30% of institutional real estate by 2030.
Key growth drivers include:
- Logistics & Warehousing: Supported by e-commerce, last-mile delivery, and supply chain re-optimization.
- Retail Spaces: Boosted by rising urban consumption.
- Data Centres: A global hotbed of investment, expected to double worldwide by 2030 due to cloud adoption and AI-driven infrastructure demand.
India is already reflecting these global trends. In the first half of 2025 alone:
- Industrial and logistics leasing jumped 60% YoY.
- Warehousing absorption rose 30% YoY.
- Institutional investment tripled to $2.5 billion in 2024.
Why Residential REITs Are Still Distant
While the outlook for commercial, industrial, and digital assets is strong, residential REITs remain a long-term prospect. Challenges such as low rental yields and fragmented ownership make the model difficult to scale in the near future.
Also Read: House Number 5 Numerology as per Vastu: Home Decor | Benefits | And Many More
CREDAI’s Vision: From Grade A Offices to a Diversified Future
Currently, over 60% of India’s REIT market value lies in Grade A offices, primarily linked to IT and BFSI sectors. But the future promises far more.
As Shekhar Patel, President of CREDAI, emphasized:
“The future holds wider promise. With growing cities, stronger infrastructure, and a diversifying economy, REITs will expand into retail, logistics, housing, and new-age assets. This transformation will unlock unprecedented opportunities for investors and firmly place India among the most dynamic REIT markets in the world.”
Conclusion
India may have entered the REIT landscape later than other countries, but it is now rapidly gaining momentum. With strong fundamentals, favorable demographics, and a pipeline of new asset classes waiting to be REITable, the country is well on track to become one of the world’s fastest-growing REIT markets by 2030.
India’s Real Estate Investment Trust (REIT) market is on an impressive growth trajectory and could surpass $25 billion in market capitalization by 2030, according to the latest CREDAI–Anarock report. Despite being relatively new compared to global peers, India’s REIT sector is rapidly evolving beyond its current focus on Grade A office spaces into new asset classes like logistics, retail, warehousing, and data centres—a shift that is expected to attract more institutional investors.
Also Read: CREDAI Assures Homebuyers: GST Rate Cuts to Lower Property Costs, Especially in Smaller Cities
A Late Start, But a Strong Run
Although India introduced REIT guidelines in 2014, the first listing happened only in 2019. Since then, the sector has expanded steadily, touching $18 billion in market capitalization as of August 2025.
Currently, REITs in India represent only 20% of institutional real estate—much lower than the USA (96%), Singapore (55%), or Japan (51%). This relatively small penetration is because most Indian REITs are concentrated in commercial office assets, which offer transparency, scale, and reliable rental yields.
Also Read: Housing Sales Likely to Dip in FY2026 as Affordability Concerns Mount, Says ICRA
Market Leaders and City-Wise Distribution
At present, India has three listed REITs—Embassy Office Parks, Mindspace Business Parks, and Brookfield India & Knowledge Realty. Together, they account for about 166 million sq. ft., or 32% of the 520 million sq. ft. of REIT-worthy office stock across the top seven cities.
- Bengaluru leads with 63.6% of listed stock.
- Hyderabad follows with 30.6%.
- Mumbai accounts for 29.4%.
Southern cities, particularly Bengaluru, Hyderabad, and Chennai, collectively dominate with over 313 million sq. ft. of stock.
Why Investors Are Taking Notice
Indian REITs currently offer distribution yields of 6–7%, which are significantly more attractive than in many mature markets. These yields, combined with rental escalations and capital appreciation potential, make them competitive with fixed-income instruments but with greater upside.
According to Shobhit Agarwal, CEO of ANAROCK Capital, Indian REITs “are late to the party, but now lead the dance,” highlighting their ability to outperform global peers in yield potential.
Also Read: What Is GST on Under‑Construction Property in 2025?
The Road Ahead: Expanding Beyond Offices
The CREDAI–Anarock report, Indian REITs: A Gateway to Institutional Real Estate, unveiled at CREDAI NATCON 2025 in Singapore, forecasts that India’s REIT penetration could reach 25–30% of institutional real estate by 2030.
Key growth drivers include:
- Logistics & Warehousing: Supported by e-commerce, last-mile delivery, and supply chain re-optimization.
- Retail Spaces: Boosted by rising urban consumption.
- Data Centres: A global hotbed of investment, expected to double worldwide by 2030 due to cloud adoption and AI-driven infrastructure demand.
India is already reflecting these global trends. In the first half of 2025 alone:
- Industrial and logistics leasing jumped 60% YoY.
- Warehousing absorption rose 30% YoY.
- Institutional investment tripled to $2.5 billion in 2024.
Why Residential REITs Are Still Distant
While the outlook for commercial, industrial, and digital assets is strong, residential REITs remain a long-term prospect. Challenges such as low rental yields and fragmented ownership make the model difficult to scale in the near future.
Also Read: House Number 5 Numerology as per Vastu: Home Decor | Benefits | And Many More
CREDAI’s Vision: From Grade A Offices to a Diversified Future
Currently, over 60% of India’s REIT market value lies in Grade A offices, primarily linked to IT and BFSI sectors. But the future promises far more.
As Shekhar Patel, President of CREDAI, emphasized:
“The future holds wider promise. With growing cities, stronger infrastructure, and a diversifying economy, REITs will expand into retail, logistics, housing, and new-age assets. This transformation will unlock unprecedented opportunities for investors and firmly place India among the most dynamic REIT markets in the world.”
Conclusion
India may have entered the REIT landscape later than other countries, but it is now rapidly gaining momentum. With strong fundamentals, favorable demographics, and a pipeline of new asset classes waiting to be REITable, the country is well on track to become one of the world’s fastest-growing REIT markets by 2030.
