India’s REIT market set to cross $25 billion by 2030: CREDAI-Anarock report

Though India trails mature REIT markets in diversification, its expansion into logistics, retail, and data centres will attract more institutional investors

The Real Estate Investment Trust (REIT) market in India has grown steadily since its first listing in 2019, reaching a market capitalization of about $18 billion as of August 2025. With three more REITs expected over the next few years, India is projected to surpass $25 billion in market capitalization by 2030, a report by Credai and Anarock has said.

With three more REITs expected over the next few years, India is projected to surpass $25 billion in market capitalization by 2030, a report by Anarock and Credai has said. (Photo for representational purposes only) (Shutterstock)

Despite REIT guidelines being introduced in 2014 and the first listing only in 2019, the Indian REIT market accounts for just 20% of institutional real estate, far below the USA (96%) or even Asian peers like Singapore (55%) and Japan (51%). This limited penetration is largely because Indian REITs are so far concentrated in Grade A commercial office assets, which offer scale, transparency, and stable cash flows, the report noted.

Out of the total REIT-worthy office stock of approximately 520 mn sq. ft. in the top 7 cities, just 32% or 166 mn sq. ft. currently listed under the three REITs - Embassy Office Parks, Mindspace Business Parks, Brookfield India & Knowledge Realty. Southern cities (Bengaluru, Hyderabad, Chennai) hold 313 mn sq. ft. of this stock, with just 31% currently listed.

The report noted that Bengaluru holds 63.6% listed REIT stock followed by Hyderabad at 30.6% and Mumbai at 29.4%. With attractive yields of 6–7%, alongside rental escalations and potential capital appreciation, they remain highly competitive compared to global peers.

As more asset classes become REITable, India’s REIT penetration could rise to 25–30% of institutional real estate by 2030, positioning it among the fastest-growing REIT markets globally, the report titled Indian REITS: A Gateway to Institutional Real Estate by Credai and ANAROCK Capital that was unveiled on September 12 at the CREDAI NATCON in Singapore said.

As the sector expands into logistics, warehousing, retail, and data centres, India’s favourable demographics, rapid urbanization, and steady GDP growth will further strengthen its appeal for institutional capital. The combination of regulatory confidence, market depth, and growth potential positions REITs to play a pivotal role in shaping the future of the country’s real estate landscape, the report said.

Globally, industrial REITs are gaining momentum on the back of sustained e-commerce penetration, supply chain re-optimization, and last-mile logistics demand, ensuring long-term rental growth and capital appreciation. Data centre REITs, valued at around $250 billion by 2024 and projected to double within seven years, are expanding rapidly due to surging cloud adoption, AI-driven workloads, and hyperscale infrastructure needs.

India is also well-positioned to mirror this trend, as reflected in a 60% YoY surge in industrial and logistics leasing in H1 2025, a 30% YoY rise in warehousing absorption, and a threefold increase in institutional investment to $2.5 billion in 2024, the report said.

Why do residential REITS remain a long-term prospect?

Residential REITs remain a longer-term prospect, constrained by low rental yields and fragmented ownership, indicating that the Indian REIT sector is still in the early stages of evolution. With more asset classes becoming REITable, India’s penetration could potentially rise to 25–30% of institutional real estate by 2030, positioning it as one of the fastest-growing REIT markets globally, the report said.

“Indian REITs are late to the party, but now lead the dance. Despite its late entry compared to global peers, India has strong fundamentals. The distribution yields, currently averaging at 6-7%, are well above many mature markets such as the US and Singapore among others. Average distribution yields of Indian REITs are competitive with fixed-income instruments but have the added potential for capital appreciation,” said Shobhit Agarwal, CEO, ANAROCK Capital.

“Over 60% of India’s REIT market value today rests with a very small set of players, with a strong base in Grade A offices linked to IT and BFSI. The future, however, holds far wider promise. As India’s cities grow, infrastructure strengthens, and the economy diversifies, 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,” said Shekhar Patel, president, CREDAI.