Indian REITs Yield 6-7.5%, Outpacing US, Singapore, and Japan: CREDAI-Anarock Report
A joint report by CREDAI and Anarock highlights that Indian Real Estate Investment Trusts (REITs) are generating average yields of 6-7.5%, surpassing mature markets like the US, Singapore, and Japan. This article delves into the current landscape of Indian REITs and their future potential.
ReitsReal EstateYieldInvestmentCredaiReal Estate NewsSep 13, 2025
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.
The joint report states that the average distribution yields of Indian REITs range between 6% and 7.5%, making them competitive with fixed-income instruments and offering the potential for capital appreciation. When compared to other REIT markets globally, 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.
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%, Singapore is 5-6%, and Japan is 4.5-5.5%.
Shekhar Patel, President of CREDAI, stated, '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.'
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. Over 1,000 delegates, including real estate developers and property consultants, are attending this three-day conference that started on September 11.
The report highlights the strong fundamentals of the Indian REIT market and its potential for significant growth in the coming years. As the economy diversifies and infrastructure improves, REITs are expected to play a crucial role in the real estate sector, offering investors a range of opportunities across various asset classes.
Frequently Asked Questions
What are Indian REITs?
Indian Real Estate Investment Trusts (REITs) 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 distribution yields of Indian REITs range between 6% and 7.5%, which is competitive with fixed-income instruments and offers the potential for capital appreciation.
How do Indian REIT yields compare to mature markets?
Indian REIT yields are higher compared to mature markets such as the US (2.5-3.5%), Singapore (5-6%), and Japan (4.5-5.5%).
What are the current listed REITs in India?
The five 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 is the future potential of 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, offering unprecedented opportunities for investors.
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