Indian REITs Outperforming Global Counterparts with Higher Yields
A recent study by CREDAI and Anarock reveals that the average yield of Indian Real Estate Investment Trusts (REITs) ranges between 6-7.5%, significantly higher than mature markets like the US, Singapore, and Japan.
ReitsReal EstateIndian ReitsYieldInvestmentReal EstateSep 14, 2025
The report, titled 'Indian REITs - A Gateway to Institutional Real Estate,' was jointly conducted by CREDAI, the apex body of Indian real estate developers, and Anarock, a property consultancy. The study highlights that the average distribution yields of Indian REITs range between 6% and 7.5%, making them competitive with fixed-income instruments but with the added potential for capital appreciation.
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. 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. Despite India lagging behind mature markets like the US, Singapore, and Japan in the diversification of REIT asset classes, the risk-adjusted yields in India remain attractive.
Shobhit Agarwal, CEO of Anarock Capital, emphasized, “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 in India are well above many mature markets such as the US (2.5-3.5%), Singapore (5-6%), and Japan (4.5-5.5%).
Shekhar Patel, President of CREDAI, added, “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, Patel concluded. The report underscores the potential for Indian REITs to diversify and grow, attracting more institutional and retail investors into the market.
Frequently Asked Questions
What are REITs?
REITs, or Real Estate Investment Trusts, are investment vehicles that own or operate income-generating real estate, allowing investors to earn a share of the income produced without directly purchasing the properties.
What is the average yield of Indian REITs?
The average yield of Indian REITs ranges between 6% and 7.5%, making them highly competitive with fixed-income instruments and offering potential for capital appreciation.
How do Indian REIT yields compare to global markets?
Indian REIT yields are significantly higher than those in mature markets like the US (2.5-3.5%), Singapore (5-6%), and Japan (4.5-5.5%).
What are the current listed REITs in India?
The current listed REITs in India are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust.
What future opportunities are expected for Indian REITs?
As India's cities grow, infrastructure strengthens, and the economy diversifies, REITs are expected to expand into retail, logistics, housing, and new-age assets, unlocking unprecedented opportunities for investors.
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