Indian REITs Yielding 6-7.5%: A Competitive Edge Over Global Markets
A report by CREDAI and Anarock reveals that Indian Real Estate Investment Trusts (REITs) are generating average yields of 6-7.5%, higher than mature markets like the US, Singapore, and Japan. This competitive edge is attracting significant investor interest.
Indian ReitsReal EstateInvestmentYieldCredaiReal EstateSep 13, 2025
CREDAI, the apex body of Indian real estate developers, and property consultant Anarock released a report titled 'Indian REITs - A Gateway to Institutional Real Estate' at an event in Singapore. The report provides a comprehensive analysis of the current landscape and future potential of Indian REITs.
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. These REITs are primarily focused on office and retail real estate. Nexus Select Trust, for instance, is backed by rent-yielding retail real estate (shopping malls), while the other four are office REITs.
The 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. This makes Indian REITs an attractive option for investors looking for steady returns with growth potential.
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, according to the consultants. 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 of Indian REITs are significantly higher than those in mature markets. For instance, 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. This higher yield is a key factor driving investor interest in Indian REITs.
Shekhar Patel, President of CREDAI, noted that over 60 per cent of India's REIT market value today rests with a very small set of players, primarily focused on Grade A offices linked to IT and BFSI (Banking, Financial Services, and Insurance) sectors. However, the future 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 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. The conference is a platform for industry leaders to discuss the latest trends and opportunities in the real estate sector.
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, Singapore, and Japan?
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, 5-6 per cent in Singapore, and 4.5-5.5 per cent in Japan.
What are the main types of REITs in India?
The main types of REITs in India are office REITs and retail REITs, with a focus on Grade A offices and shopping malls.
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 infrastructure improves.
What is CREDAI and its role in the real estate sector?
CREDAI, the apex body of Indian real estate developers, has over 13,000 members and organizes annual events like CREDAI-NATCON to discuss industry trends and opportunities.
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