Indian REITs Outperform US and Singapore in Yield: CREDAI-Anarock Report
Indian Real Estate Investment Trusts (REITs) are generating higher yields compared to the US and Singapore, according to a report by CREDAI and Anarock. Explore the potential of REIT investments in India.
Indian ReitsReal EstateInvestment YieldsCredaiAnarockReal Estate NewsSep 13, 2025
The report, titled 'Indian REITs - A Gateway to Institutional Real Estate,' was released at an event in Singapore. CREDAI, the apex body of Indian real estate developers, and property consultant Anarock jointly prepared the report.
Currently, 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.
'Average distribution yields of Indian REITs range between 6 per cent and 7.5 per cent, competitive with fixed-income instruments but with the added potential for capital appreciation,' the joint report stated.
When compared with other REIT markets globally, the report found that India still lags behind mature markets like the US, Singapore, and Japan in the diversification of REIT asset classes. However, the risk-adjusted yields in India remain attractive, according to the consultant.
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.' He added that the distribution yields are well above many mature markets such as the US and Singapore.
The average yield in the US is 2.5-3.5 per cent, in Singapore 5-6 per cent, and in Japan 4.5-5.5 per cent.
Shekhar Patel, President of CREDAI, said, '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 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 those in the US and Singapore?
Indian REIT yields are higher, with an average of 6-7.5 per cent, compared to 2.5-3.5 per cent in the US and 5-6 per cent in Singapore.
What are the main types of REITs in India?
Currently, the main types of REITs in India include office REITs and retail REITs, with the majority being office REITs linked to IT and BFSI sectors.
What is the future potential of Indian REITs?
The future potential of Indian REITs is significant, with expected expansion into retail, logistics, housing, and new-age assets as India's cities grow and the economy diversifies.
What is CREDAI's role in the Indian real estate market?
CREDAI, the apex body of Indian real estate developers, plays a crucial role in representing the interests of real estate developers and promoting the growth of the real estate sector in India.
Related News Articles
India Emerges as a Formidable Player in APAC Real Estate Investments
India secures 5th spot in cross-border investments in APAC, capturing 9% of total investment volume in H1 2024
Real Estate Trends: Surge in Demand for 3BHK and 1BHK Apartments in Bengaluru and NCR
In the booming real estate markets of Bengaluru and the National Capital Region (NCR), there has been a noticeable shift in buyer preferences. Homebuyers are increasingly opting for 3BHK and 1BHK apartments, reflecting a blend of practical needs and lifes
Mumbai Sees 5% Increase in Property Registrations in November 2024
Real estate consultant Knight Frank India reports a 5% rise in property registrations in Mumbai, totaling 10,216 units in November 2024.
India's House Price Index Grows 3.1% in Q3: RBI Data Highlights
The Reserve Bank of India (RBI) reports a 3.1% increase in the All-India House Price Index (HPI) for the third quarter of 2024-25. This growth is a slowdown compared to the previous quarter's 4.3% and the year-ago period's 3.8%. The quarterly report, base
AIFORERA Visits Auroville: Discovering Sustainable Urban Planning and Real Estate Innovations
Members of AIFORERA recently visited Auroville to study its innovative urban planning and sustainability initiatives, aiming to apply these models in real estate governance.
Maharashtra's IGR Set to Achieve ₹55,000 Crore Revenue Target for 2024-25
Pune: The Inspector General of Registration (IGR) and Controller of Stamps in Maharashtra is on track to meet its ambitious revenue target of ₹55,000 crore for the fiscal year 2024-25, driven by robust growth in the real estate sector. Local developers at