India’s Real Estate Investment Trust (REIT) market capitalisation is projected to rise from $18 billion in 2025 to $25 billion by 2030, supported by a sharp expansion in investable assets. REIT-able office stock alone is expected to double from ₹8.2 trillion in 2025 to ₹16 trillion by 2030, while retail and alternative asset classes are also set to scale up.
Together, these trends position India to emerge as one of the most dynamic REIT markets globally, according to a Vestian report.
With the foundational framework firmly in place, the next phase of growth will be driven by greater diversification, increased scale, and improved policy coherence, key catalysts that are expected to transform India’s REIT platform into a broad, multi-sector investment universe, it said.
According to the report, India currently has five listed REITs, of which four focus on office assets and one on the retail segment. The dominance of office REITs reflects the early stage of the ecosystem, as most other real estate asset classes are yet to achieve the scale, maturity, and institutional structure required for public REIT listings, the report said.
How does India’s REIT market compare globally?
The REIT market remains at a nascent stage, with REITs accounting for only 19% of the country’s listed real estate value, compared to a global average of 57%. While this gap highlights India’s relative under-penetration, it also signals substantial headroom for long-term growth as the market matures and diversifies, according to the report.
The report said that globally, REIT ecosystems are far more diversified. Markets such as the United States (US), Australia, Singapore, Japan, and the UK host multiple REIT categories spanning residential, healthcare, logistics, self-storage, data centres and mortgage-backed platforms.
In countries like the US and Australia, over 95% of listed real estate value is held within REITs, underscoring the maturity and depth of these markets. In comparison, India’s REIT market cap represents just 0.4% of the total stock market, reinforcing its early-stage position but also highlighting the scale of untapped opportunity, the report said.
India’s REIT ecosystem: early but expanding
According to the report, although REIT regulations were notified in 2014, India’s first REIT listing came only in 2019. Over the past six years, the sector has experienced rapid growth, expanding from ₹264 billion in FY20 to ₹1.6 trillion by Q2 FY26. However, the availability of stabilised, income-generating assets remains limited, as a large portion of commercial stock is either under construction or held in fragmented ownership structures.
The report stated that office assets continue to anchor India’s REIT market, with listed portfolios spanning over 135 million sq ft. These assets benefit from predictable leasing demand from Global Capability Centres (GCCs), technology firms, and BFSI occupiers, supporting stable yields of 5–7%.
According to the report, retail REITs have been slower to emerge due to the sector’s dependence on footfall dynamics, consumption trends, and long-term tenant management. Currently, Nexus Select Trust is India’s only retail REIT, despite the country having over 89 million sq ft of Grade A retail stock.
Residential REITs in India face near-term constraints; long-term potential hinges on rental housing scale
According to the report, residential real estate remains on the threshold of REIT inclusion but faces structural challenges. Low rental yields of 2–3%, fragmented ownership, high tenant churn, and the absence of large institutional rental portfolios continue to limit viability. Additionally, India lacks a unified rental housing policy, a critical enabler in mature REIT markets such as the US, Japan, and Singapore. While emerging formats like co-living, student housing, and senior living offer promise, residential REITs remain a longer-term prospect, the report said.
(The writer is a journalist with more than 20 years of experience reporting on real estate, regulatory and urban issues.)
