Indian REITs Offer Higher Yields Compared to US and Singapore: CREDAI-Anarock Report
Indian Real Estate Investment Trusts (REITs) are generating an average yield of 6-7.5% for unitholders, surpassing mature markets like the US and Singapore, according to a report by CREDAI and Anarock.
ReitsReal EstateInvestmentYieldsIndiaReal EstateSep 13, 2025
At present, there are five listed REITs in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. Nexus Select Trust is backed by rent-yielding retail real estate (shopping malls), while the other four are office REITs.
The joint report highlights that the average distribution yields of Indian REITs range between 6 per cent and 7.5 per cent, which is competitive with fixed-income instruments but with the added potential for capital appreciation. Comparing with other REIT markets globally, the report found that India still lags mature markets like the US, Singapore, and Japan in the diversification of REIT asset classes. However, the risk-adjusted yields in India remain attractive, the consultant said.
Shobhit Agarwal, CEO of Anarock Capital, commented, '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 are well above many mature markets such as the US and Singapore, he added. The average yield in the US is 2.5-3.5 per cent, Singapore 5-6 per cent, and Japan 4.5-5.5 per cent.
Shekhar Patel, President of CREDAI, stated, 'Over 60 per cent 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, he added. REITs are investment vehicles that own or operate income-generating real estate, enabling investors to earn a share of the income produced without directly purchasing the properties. CREDAI, which has more than 13,000 members, is organizing its annual event CREDAI-NATCON in Singapore. More than 1,000 delegates, including real estate developers and property consultants, are attending this three-day conference that started on September 11.
Frequently Asked Questions
What are Real Estate Investment Trusts (REITs)?
REITs are investment vehicles that own or operate income-generating real estate. They allow investors to earn a share of the income produced without directly purchasing the properties.
What is the average yield of Indian REITs?
The average distribution yields of Indian REITs range between 6 per cent and 7.5 per cent.
How do Indian REIT yields compare to other global markets?
Indian REIT yields are higher than mature markets like the US (2.5-3.5 per cent), Singapore (5-6 per cent), and Japan (4.5-5.5 per cent).
What are the main types of REITs in India?
The main types of REITs in India include office REITs and retail REITs. Currently, there are five listed REITs in India.
What is the future outlook for Indian REITs?
The future outlook for Indian REITs is promising. As India's cities grow, infrastructure strengthens, and the economy diversifies, REITs are expected to expand into retail, logistics, housing, and new-age assets.
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